Source: New Zealand Government
Associate Justice Minister Nicole McKee has cut unnecessary red tape so banks can more easily share vital information to better protect New Zealanders from fraud and scams.
A ministerial exemption to the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009 now allows several banks to share AML-related information with one another for the purpose of preventing fraud and scams.
“Anti–money laundering rules have made it too hard for banks to share information about known fraud or scam activity – including ‘mule’ accounts and associated details,” says Mrs McKee.
“This red tape relief means banks will be able to act faster, work together more effectively, and in many cases freeze scam transfers before the money disappears overseas for good.
“It shows that we don’t always need to create new rules or spend more taxpayers’ money to fix what matters.
“Often, the best thing government can do is step aside and give individuals and businesses the freedom to solve their own problems in innovative ways.
“This is especially important in today’s fast-moving digital world, where scammers and fraudsters constantly evolve their tactics. Our regulatory settings need to be just as agile.
“That’s why this Government is also making wider reforms to the AML/CFT regime to ensure it targets actual financial criminals while freeing law-abiding New Zealanders and businesses from the headache and cost of excessive red tape.
“Once implemented, these reforms will deliver the most significant regulatory relief since the AML/CFT regime was first introduced in 2013.
“That means less time and money wasted on box-ticking, and more focus on improving productivity, creating jobs, and lifting incomes.”
