New Zealand

New Documents

U.S. Secretary of State Michael R. Pompeo issued a press statement outlining new sanctions targeting seven entities and two individuals for their connections to the Islamic Republic of Iran Shipping Lines.

U.S. Secretary of State Michael Pompeo announced designations under Executive Order 13949, which targets those who seek to abet Iran in supporting armed groups in the region with weapons and arms materiel.

News

Enforcement Actions

The Financial Crimes Enforcement Network penalized the McLean, VA-based entity a total of $390,000,000, which will be satisfied with a payment of $290,000,000 due to a previous related penalty, for failing to implement and maintain an adequate anti-money laundering program. 

Luxembourg’s Commission de Surveillance du Secteur Financier issued a €150,000 penalty against the Luxembourg-based financial firm for failing to address anti-money laundering and counterterrorist financing deficiencies related to internal governance and risk management.


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

Technical Effectiveness
Compliant : 8 High :
Largely Compliant : 17 Substantial :
Partially Compliant : 6 Moderate :
Non-Compliant : 18 Low :

BASEL i

Rank : 135/141
Score : 3.24/10

TRANSPARENCY INTERNATIONAL i

Rank : 1/180
Score : 87/100

Tax Justice Network i

Rank : 57/133
Score : 59/100