Global Daily Tax News, New Zealand To Table Final Bill Overhauling AML/CFT Regime, (Aug 31, 2026)

The New Zealand Government has said it will soon table in parliament the fourth and final bill to overhaul the nation's anti-money laundering laws.

The Government noted that the earlier 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 for taxpayers using a family trust.

Earlier reforms also established the Department of Internal Affairs as the single AML/CFT regulator.

Associate Justice Minister Nicole McKee said: "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."

"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."

The Government has said, 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.

McKee said: "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."

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