New Zealand’s Final AML Reform Bill Introduces Targeted Anti-Money Laundering Measures

The fourth and final bill in the Government’s overhaul of New Zealand’s anti-money laundering laws will soon be introduced to Parliament, says Associate Justice Minister Nicole McKee.

The AML/CFT (Omnibus) Amendment Bill represents the most substantial reform of the Anti-Money Laundering and Countering Financing of Terrorism Act since it was passed in 2009, says Mrs McKee.

For too long, our AML rules have treated ordinary New Zealanders as though they are potential criminals first and customers second. That has meant unnecessary paperwork, delays and frustration for people doing perfectly normal things like establishing a family trust, opening a bank account for their child, or buying and selling property.

The Government has pushed for a system that targets actual risk rather than burying every New Zealander and every business under the same compliance burden.

This Bill delivers that by giving businesses greater flexibility to simplify customer verification where the risk of money laundering or terrorist financing is low. Resources can then be focused where the risks are real.

The Bill also strengthens the tools available to deal with genuinely suspicious activity, including allowing an issuing officer, such as a judge or Justice of the Peace, to approve the temporary freezing of high-risk transactions and accounts.

It will also create powers to regulate cash payments involving remittance services and virtual assets, such as cryptocurrencies and tokens, where there is evidence that restrictions are necessary to address criminal misuse.

Before any regulations are made, the Ministry of Justice will consult affected users and providers so the Government understands the real-world consequences for legitimate customers and businesses.

Our aim is to reduce criminal misuse and harm while allowing lawful transactions to continue.

This Bill completes a reform programme that is already delivering practical improvements. Changes passed in 2025 and 2026 removed the requirement to verify address information for standard customer due diligence, and removed the mandatory requirement for costly source of wealth verification simply because a customer was using a family trust.

Earlier reforms also established the Department of Internal Affairs as the single AML/CFT regulator, replacing a fragmented system with one regulator responsible for providing clearer and more consistent guidance.

Taken together, these reforms move New Zealand away from rigid box-ticking and towards regulation based on actual risk.

New Zealand needs effective safeguards against money laundering and terrorist financing, and we will continue to meet our international obligations. But good regulation should be proportionate, targeted and workable. That is what these reforms are designed to deliver.

Notes to editors: Given the proximity of the General Election, the Ministry of Justice intends to consult on any proposals for regulations to restrict cash payments for remittance services and virtual assets in early 2027, allowing meaningful engagement with affected users and providers.

A copy of the Bill is attached.