Hon Nicole McKee
Associate Minister of Justice

Associate Justice Minister Nicole McKee has welcomed the passage of two major Anti–Money Laundering (AML) reform Bills through their final readings in Parliament today, cutting red tape and fixing what matters for thousands of businesses.

“Once these Bills receive Royal Assent in the next couple of days, Kiwis will immediately begin experiencing faster and less duplicative AML requirements, saving them time and money,” says Mrs McKee.

Additional changes come into force on July 1 this year.

“The Bills cut red tape, improve clarity, and ensure requirements on businesses and the customers are proportionate to risk. For example, low-risk trusts won’t be treated the same as high-risk entities, and businesses will face fewer repetitive reporting requirements.

“The current AML regime has drifted into costly box-ticking that frustrates businesses and everyday New Zealanders, without doing enough to stop serious criminals.

“These Bills refocus the system on genuine risk – reducing pointless paperwork for low-risk customers while improving the detection and disruption of real financial crime.”

The Anti–Money Laundering and Countering Financing of Terrorism (Supervisor, Levy, and Other Matters) Amendment Bill streamlines oversight by establishing a single AML supervisor, improving consistency and responsiveness across the system.

“At the moment, there are three different AML supervisors. That creates confusion, delays, and inconsistent guidance. A single supervisor will provide clarity and faster, more reliable support,” says Mrs McKee.

The Bill also enables more flexible rule-making through secondary legislation and introduces an industry levy to ensure the system is properly resourced.

Alongside this, the Anti–Money Laundering and Countering Financing of Terrorism Amendment Bill delivers targeted, practical changes to reduce compliance burdens.

“I’d like to thank Parliament’s Business Committee for agreeing to associate these Bills so they could be debated together. That has helped deliver regulatory relief sooner.

“The Supervisor, Levy and Other Matters Bill will be effective on 1 July 2026, while the other Amendment Bill will be effective the day after Royal Assent. A final ‘Omnibus’ Bill, that will provide further regulatory relief for businesses, is expected to be introduced to the House in the current term of Government.

“These reforms preserve New Zealand’s access to global financial markets while making the system far more workable at home.

“For years, AML compliance has meant higher costs, slower transactions, and endless frustration. These changes deliver the most meaningful reduction in AML red tape since the regime was introduced.”

Notes:

• Once passed into law, DIA will update guidance to reflect changes in the AML/CFT Amendment Bill that will be effective immediately. Updated guidelines will be published on DIA’s website.
• Planning for the transition to the Department of Internal Affairs as the single AML supervisor (regulator) is on track to go live on 1 July 2026. DIA is working in partnership with the FMA and RBNZ to ensure a co-ordinated and seamless transition and minimal disruption for the sector.

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