Associate Justice Minister Nicole McKee. Photo: RNZ / Samuel Rillstone
The government says it is reforming anti-money laundering laws to help small businesses.
Associate Justice Minister Nicole McKee said current anti-money laundering legislation, which required financial service providers to report all domestic transactions worth more than $10,000 to police, was too complicated.
Reform work had been approved and would streamline the law for businesses, police and the public, she said.
"The reforms will deliver a critical government priority to cut red tape and improve the quality of regulation.
"My aim is to provide regulatory relief to businesses and the public, enabling law enforcement to crack down on organised crime, and ensuring that New Zealand upholds its international reputation."
The current regulations hurt small businesses that could not afford to have dedicated compliance teams, McKee said. The reforms would deliver "the most significant regulatory relief" since the Anti-Money Laundering and Countering Financing of Terrorism Act came into force 11 years ago.
"The reforms will be undertaken in three parts. The first part is already well-advanced and will deliver immediate relief via two bills - the first of which, the Statutes Amendment Bill, has already been introduced to Parliament.
"The second part will focus on structural changes and a sustainable funding model, to create a more effective and efficient system. The final part will make additional regulatory changes to implement international standards and deliver a more risk-based system."
ACT campaigned on making anti-money laundering compliance "user-friendly for small businesses", McKee said.
"I have heard from countless New Zealanders that the current regulations are unnecessarily risk-averse, resulting in complicated, repetitive processes. Simple tasks shouldn't be made confusing and difficult to complete."
McKee said she was taking a "pragmatic approach" to the work to ensure that New Zealand still met the standards set by the Financial Action Task Force.
"Complying with these standards is important to protect our economy and our international reputation."
