The New Zealand Government has introduced a bill aimed at reducing the regulatory burden on businesses, particularly those involved in low-risk activities, such as family trusts.

The Anti-Money Laundering and Countering Financing of Terrorism Amendment Bill, which had its first reading in Parliament, proposes 26 amendments designed to simplify compliance requirements for businesses.

Associate Justice Minister Hon Nicole McKee said the bill aims to improve the effectiveness and efficiency of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009.

“This Bill will reduce the compliance burden for businesses by relaxing requirements on low-risk activities,” McKee explained.

“It empowers businesses to make decisions on the level of checks they need to conduct on their customers.”

The amendments also aim to address common issues faced by businesses that have been required to conduct rigorous checks, even in situations where there is little to no risk.

One of the key changes includes the clarification of the definition of "trust and company service providers," helping to eliminate confusion and unnecessary duplication of obligations for some businesses.

In addition, the bill proposes removing duplicative border cash reporting when people bring cash into New Zealand, streamlining the process further.

These reforms are part of a wider initiative by the Government to improve the AML/CFT system, making it more efficient and better aligned with real-world risks.

“We’re simplifying the process for businesses, enabling them to focus on their operations while still protecting New Zealand from crime and terrorism,” McKee said.

For Hibiscus Coast businesses, particularly those involved in family-run or low-risk enterprises, the proposed changes come as welcome news.

The simplified compliance requirements are expected to reduce administrative burdens and help businesses allocate more resources to growth and customer service.

As the Government continues with further reforms, businesses can look forward to a more manageable regulatory environment that still ensures the integrity of New Zealand’s financial system.

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