NZ Unifies Anti-Money Laundering Oversight Under One Regulator

The Government says the changes are part of a wider effort to make compliance more practical without weakening safeguards against financial crime.

New Zealand has taken a major step in reshaping its anti-money laundering system, with the Department of Internal Affairs (DIA) officially becoming the country's sole regulator for anti-money laundering and countering the financing of terrorism (AML/CFT).

Associate Justice Minister Nicole McKee said the change brings around 1,200 additional businesses under DIA's supervision, meaning all approximately 6,100 reporting entities will now deal with a single regulator. The Government expects the move to provide businesses with clearer guidance, more consistent oversight, and a simpler compliance process. Officials say the new structure is designed to reduce confusion for businesses while keeping the focus on tackling organised crime, fraud, and the movement of illegal money through New Zealand's financial system.

Reforms Focus on Cutting Red Tape

The Government says the changes are part of a wider effort to make compliance more practical without weakening safeguards against financial crime. DIA already supervises high-risk sectors such as casinos, money remitters, and other businesses that face elevated money laundering risks, giving it experience to lead the expanded regulatory role.

Since the single regulator was announced in 2024, DIA has worked alongside the Financial Markets Authority and the Reserve Bank of New Zealand to prepare for a smooth transition. Three reform bills have already become law, with another still to be introduced. Together, the reforms are expected to reduce unnecessary compliance requirements, lower costs for lower-risk businesses, and create a regulatory system that is easier to understand and follow.

New Strategy and Industry Levy Back Long-Term Changes

The reforms also mark the start of the AML/CFT National Strategy 2026–2030, a four-year programme focused on making it easier for legitimate businesses to operate while making financial crime harder to commit. An industry levy will help fund the programme alongside government investment. The levy, which will take effect from July 2027, will support the New Zealand Financial Intelligence Unit's intelligence capabilities, strengthen DIA's supervisory work, and help the Ministry of Justice manage the regulatory framework. It was developed in consultation with industry and will be reviewed every three years.

According to the Government, more than NZ$1.6 billion is laundered through New Zealand each year. Officials say the latest reforms are intended to improve the country's ability to detect and disrupt financial crime while protecting access to international financial markets and creating a more practical system for businesses that must comply with AML rules.