Changes to New Zealand’s anti-money laundering regime designed to cut red tape

The article is relevant to members in New Zealand and was current at the time of publication.

Amendments to New Zealand’s anti-money laundering and counter-terrorism financing laws have passed parliament. The government maintains these reforms “deliver the most meaningful reduction in AML red tape since the regime was introduced,” says Associate Justice Minister Nicole McKee.

“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,” McKee notes.

Reforms include eradicating duplication and consolidating the regime’s three supervisory responsibilities into the Department of Internal Affairs (DIA) as the sole regulator.  

The reforms comprise three separate amendments with one to be introduced to parliament midyear, and two already passed into law.

As well as creating a single regulator in the DIA, the Anti-Money Laundering and Countering Financing of Terrorism (Supervisor, Levy, and other Matters) Amendment Act 2026 (the Act) — due to take effect on 1 July — enables the setting and collection of an industry levy to [part] fund an AML/CFT strategy and regulatory work programme. This is subject to final Cabinet approval. 

The Act also allows agencies to make regulatory changes through alternative forms of secondary legislation such as rules and notices.

The second reform, the Anti-Money Laundering and Countering Financing of Terrorism Amendment Bill, is designed to clarify for businesses a risk-based approach in a targeted manner and “remove duplication and ensure obligations, including due diligence, and the provision of records, are applied proportionately, and not through rigid rules”.

With this reform effective immediately, guidance for reporting entities will be updated to reflect these changes. 

The final amendment will deliver further regulatory relief and enact wider legislative changes to implement international standards required by the Financial Action Task Force. It will also include measures to support law enforcement to tackle organised crime.