Reforms to Ease AML/CFT Compliance Burden on Small Businesses Announced

The AML/CFT work programme aligns with ACT's commitment to make regulatory compliance easier for New Zealand businesses.

In response to a recent BusinessNZ report on the compliance challenges facing small businesses, Associate Justice Minister Nicole McKee has committed to addressing these issues through reforms in New Zealand’s Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regime. Aiming to reduce regulatory burdens and improve operational clarity, McKee announced that her office will prioritize reforms to the existing system, with a particular focus on streamlining customer due diligence (CDD) requirements, which currently represent the most significant compliance cost for businesses.

“The concerns raised in the BusinessNZ report closely mirror feedback I have received directly from businesses,” McKee said. “Our AML/CFT work programme is dedicated to removing these costly hurdles while ensuring New Zealand remains robust in its financial security.”

A major component of the proposed AML/CFT reforms is the consolidation of supervisory responsibilities under a single AML/CFT supervisory body. This approach is expected to simplify compliance procedures and reduce inconsistencies in guidance that currently arise from having multiple supervisory agencies. “By moving to a single AML/CFT supervisor, businesses will receive clear, consistent guidance, making it easier to comply with regulations and reduce redundant processes,” McKee added.

Recognizing that small businesses need both simplified processes and practical support, McKee emphasized the importance of making AML compliance more user-friendly. To achieve this, her office will explore new exemption options for small and medium-sized enterprises (SMEs), expanding eligibility and simplifying the application process. The proposed reforms aim to support SMEs by minimizing duplicative procedures, ultimately allowing them to focus resources on growth and development rather than complex regulatory requirements.

The AML/CFT work programme aligns with ACT's commitment to make regulatory compliance easier for New Zealand businesses. McKee stressed the importance of practical, accessible guidance in helping small businesses navigate AML/CFT requirements, and her office will focus on producing timely, sector-specific resources that allow businesses to better understand and implement required measures.

“These improvements will help small business owners stay compliant without overwhelming them with paperwork and costs,” McKee noted. “By creating a regulatory environment that is both secure and efficient, we can support New Zealand businesses in reaching their potential while safeguarding our financial system.”

The reforms are expected to make compliance both cost-effective and streamlined, alleviating the burdens on small businesses while maintaining rigorous financial standards in New Zealand.