NZ Unveils New AML Strategy to Cut Red Tape and Crack Down on Crime

New Zealand's anti-money laundering regime will shift toward a sharper, truly risk-based system under a new National Strategy released today, aimed at reducing costly compliance burdens for everyday New Zealanders while strengthening enforcement against organised crime.

Associate Justice Minister Nicole McKee has launched the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) National Strategy 2026–2030, setting out a four-year reform programme designed to restore common sense, consistency and effectiveness across the system.

"The Strategy makes it easier for honest New Zealanders and businesses to get ahead, while making it harder for criminals to hide and profit," Mrs McKee says.

Four-Year Plan to Modernise AML/CFT Rules

The Strategy provides a clear roadmap for the period 2026 to 2030, developed in consultation with industry and designed to give businesses greater certainty about the Government's priorities.

"Developed in consultation with industry, the Strategy provides clear direction and certainty so the AML/CFT system can plan ahead with confidence," Mrs McKee says.

The Government says the reforms will reduce unnecessary compliance costs that have increasingly been passed on to consumers through higher fees and slower services.

Ending 'Box-Ticking' Compliance

Mrs McKee says AML/CFT rules have drifted away from their original purpose, becoming an expensive exercise in paperwork rather than a meaningful crime-fighting tool.

"AML/CFT rules have drifted into expensive box-ticking. That creates delays, frustration, and compliance costs that get passed on to consumers," she says.

The Strategy signals a shift away from blanket requirements and toward smarter regulation focused on genuine threats.

A Truly Risk-Based System

A central pillar of the new Strategy is delivering a fully risk-based approach, where low-risk customers and routine transactions face fewer barriers, while enforcement is sharpened against high-risk activity.

"The new AML/CFT system will be truly risk-based, to cut unnecessary red tape for low-risk customers and transactions, while sharpening enforcement where it matters most," Mrs McKee says.

This includes ensuring reporting entities such as:

• Banks

• Real estate agencies

• Law firms

• Financial service providers

are focused on real risk indicators rather than chasing low-value documentation.

"We want reporting businesses focused on genuine risk — not chasing low-risk paperwork that does nothing to stop organised crime."

Fewer Barriers for Everyday New Zealanders

The Government says the reforms will reduce unnecessary hurdles for ordinary people carrying out basic financial activity.

That includes situations such as:

• Parents opening bank accounts for their children

• Customers completing standard transactions

• Low-risk individuals repeatedly asked for excessive verification

"That means fewer unnecessary hurdles for New Zealanders simply trying to complete basic transactions," Mrs McKee says.

Stronger Detection of Serious Crime

While easing burdens for low-risk activity, the Strategy also aims to strengthen the system's ability to disrupt major criminal threats.

The Government says the new approach will better detect and deter:

• Fraud and financial scams

• Drug trafficking proceeds

• Offshore criminal wealth

• Organised crime networks

"It also means a stronger system that better detects, deters and disrupts serious crime," Mrs McKee says.

Move to a Single National Supervisor

To improve clarity and consistency, the Strategy confirms the transition to a single AML/CFT supervisor, with the Department of Internal Affairs (DIA) taking over full supervisory responsibility from 1 July.

"To make compliance clearer and more consistent, the Strategy confirms the move to a single AML/CFT supervisor," Mrs McKee says.

Businesses have long raised concerns about fragmented oversight and inconsistent guidance under multiple supervisors.

"A single supervisor means less confusion, better guidance, and a system that supports compliance."

Biggest Regulatory Relief Since 2013

Mrs McKee says the Strategy represents the most significant reset of the AML/CFT regime since it was introduced in 2013.

"The Strategy will help deliver the most significant regulatory relief since the AML/CFT regime began," she says.

It builds on reforms already underway, including simplifying customer verification rules that have caused years of frustration for both businesses and the public.

The Government says the 2026–2030 Strategy marks a turning point toward a system that is tougher on criminals, lighter on honest New Zealanders, and fit for the future.