New Zealand

New Documents

The European Council issued a press release summarizing foreign policy debates amongst member states during the Foreign Affairs Council meeting.

The U.S. Justice Department announced that Pavel Stassi and Aleksandr Skorodumov were sentenced for their roles in a scheme to provide “bulletproof hosting” services to cybercriminals between 2009 to 2015.

News

Enforcement Actions

The Malta Financial Intelligence Analysis Unit issued an administrative measure imposing two fines totaling €337,422 on the Sliema, Malta-based financial institution for breaches of the Prevention of Money Laundering and Funding of Terrorism Regulations.

The Financial Supervisory Authority of Sweden, Finansinspektionen, issued an injunction to take remedial action against the Sweden-based subsidiary of Danske Bank A/S, requiring it to assess how its products and services may be used for money laundering or terrorist financing.


Key Documents

Important Facts

  • The U.S. State Department identifies New Zealand as a monitored jurisdiction. The jurisdiction is not a major regional or offshore financial center and money laundering cases are infrequent. However, authorities note it is difficult to estimate the extent of money laundering because every serious crime that generates proceeds could lead to a money laundering offense. Money laundering generally occurs through the financial system, but the purchase of real estate and other high value assets as well as the use of foreign exchange dealers have become increasingly popular methods of laundering money. Narcotics proceeds from methamphetamine and cannabis sales and fraud-associated activity, mainly online banking fraud, are the primary sources of illicit funds. International organized criminal elements, mostly from Asia, are known to operate in New Zealand, but not extensively. New Zealand is a low threat environment for terrorist finance. The country has a small number of casinos, which operate gaming machines and a variety of table games.
  • KYC Covered Entities:  Banks, exchange offices, and money service businesses; credit card companies; mortgage lenders; casinos; securities brokers/dealers; safekeeping providers; asset and individual or collective portfolio managers; and life insurance or other investment-related insurance entities
  • STR Covered Entities: Banks, exchange offices, and money service businesses; credit card companies; mortgage lenders; casinos; securities brokers/dealers; safekeeping providers; asset and individual or collective portfolio managers; and life insurance or other investment-related insurance entities
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 12 (July 1, 2014 – June 30, 2015); Convictions: 2 (July 1, 2014 – June 30, 2015)
-Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 8 High : 2
Largely Compliant : 20 Substantial : 4
Partially Compliant : 12 Moderate : 5
Non-Compliant : 0 Low : 0

BASEL i

Rank : 10/110
Score : 3.53/10

TRANSPARENCY INTERNATIONAL i

Rank : 1/179
Score : 88/100

Tax Justice Network i

Rank : 57/133
Score : 59/100