Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Proposed Framework To Prevent Money Laundering

Proposed framework to prevent money laundering and terrorism financing

Associate Justice Minister Clayton Cosgrove today released the third and final discussion document on proposals to prevent money laundering and terrorist financing.

The discussion documents, all released since August last year, outline proposed regulatory changes to enable New Zealand to meet its Financial Action Task Force (FATF) obligations.

FATF is an inter-governmental body that sets international standards for combating money laundering and terrorist financing. Its 33 members include New Zealand, the United States, Great Britain, Canada and Australia.

Mr Cosgrove said upgrading the security measures to prevent money laundering in this country was important domestically, as well as internationally.

"New Zealand's stable financial system makes it attractive for international criminals to deposit funds here and then move the money to other jurisdictions, so we must not be a weak target," he said. "Money laundering also occurs here, primarily by drug dealers, so these measures are important for making our communities safer."

Mr Cosgrove said the earlier discussion rounds sought feedback on the FATF compliance requirements, and the third seeks comment on the proposed framework for monitoring and enforcing businesses' compliance with those requirements.

In response to submissions raising concerns about compliance costs, the proposed framework outlined in the third discussion document minimises compliance costs by using existing regulatory frameworks where possible, he said.

Mr Cosgrove said the Government is therefore proposing the most cost-effective, business-friendly option.

"Our aim is to minimise costs by using existing regulatory arrangements rather than creating a new agency to carry out this vital work," he said. "For example, it is proposed that the Reserve Bank, the Securities Commission and the Department of Internal Affairs supervise the businesses they already regulate for other purposes." The Government plans to introduce the proposed framework in two stages to allow more time to consult with industry over the supervisory requirements.

Financial institutions and casinos will be the first group of businesses covered by the new requirements. Other businesses, including lawyers, accountants, and real estate agents, will be not be covered until the second stage, although they will remain subject to their existing legal obligations to prevent money laundering and terrorist financing. “These groups have strong industry associations that may be capable of assuming the new supervisory functions,” said Mr Cosgrove. “We want to work with those industry associations to determine how to utilise their industry expertise in the new framework to stop duplication, and prevent any wasting of time and money."

Mr Cosgrove said the approach is also broadly consistent with the Australian reform process currently underway across the Tasman.

The document Anti-Money Laundering And Countering The Financing Of Terrorism: Supervisory Framework is available on the Ministry of Justice's website at www.justice.govt.nz and submissions close on 30 November 2006.

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Supreme Court: Worksafe Decision On Whittall Pike River Prosecution Unlawful

The question in issue on the appeal was whether WorkSafe New Zealand acted to give effect to an unlawful agreement of this nature when it offered no evidence on charges against Peter William Whittall for breaches of the Health and Safety in Employment Act 1992...

The Supreme Court... has found that the decision to offer no evidence was made under an unlawful agreement to stifle prosecution. It has granted a declaration to that effect. More>>

 

Cullen To Chair: Tax Working Group Terms Of Reference Announced

Finance Minister Grant Robertson and Revenue Minister Stuart Nash today announced the Terms of Reference for the Tax Working Group and that the Group will be chaired by Sir Michael Cullen. More>>

ALSO:

Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them. More>>

ALSO:

Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>

ALSO:

Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. More>>

ALSO:

Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>

ALSO:

Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election