The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) and its regulations place obligations on New Zealand’s financial institutions to detect and deter money laundering and terrorism financing.
Money laundering is how criminals disguise the illegal source of their money. Financers of terrorism use similar techniques to avoid detection and protect the identity of those providing and receiving the funds.
The anti-money laundering and countering financing of terrorism regime was established to detect and deter money laundering and the financing of terrorism, to maintain and enhance New Zealand’s international reputation and to support public confidence in the financial system.
It does this by facilitating co-operation amongst reporting entities, supervisors, and other government agencies, in particular law enforcement and regulatory agencies.
The FMA is one of three supervisors under the Act, along with the Reserve Bank of New Zealand and the Department of Internal Affairs.
The Reserve Bank supervises banks, life insurers and non-bank deposit takers. The Department of Internal Affairs covers casinos, non-deposit-taking lenders, money changers and reporting entities not covered by the other supervisors.