Speech to AML Summit 2026

Justice

Good morning and a warm welcome to everyone.

I'm delighted to be back here at this annual immersion of all things Anti-Money Laundering.

My thanks to AML Solutions for bringing you all together again. Having the AML experts and AML compliance peers in one room to discuss changes and innovations each year is worthy of acknowledgment. Thanks again for inviting me to be a part of it.

This year's conference theme is "Practical Insights for Every Organisation - supporting entities to turn complex requirements into clear and actionable steps that make a real difference in everyday compliance".

The theme is exactly right. Because for too long, the gap between what the rules require and what actually makes sense has been too wide. That's what I'm here to fix.

I want to begin with a story.

Earlier this year I was part of a trade delegation to Latin America - promoting New Zealand as a safe, trusted place to invest and do business. A strong, well-functioning, AML system is a big part of that pitch, as you all know.

But before I left, I went to get some foreign currency.

The person at the exchange counter, who had no idea who I was, kept apologising for all the paperwork and blaming the AML rules. He was embarrassed by it.

Then he asked if I was travelling with some other MPs who'd been through earlier. I said yes.

He asked what I did and I said: "I'm the Minister responsible for AML laws."

He laughed. And asked what my real job was.

When he realised I was serious, he apologised again.

And I said: "No - I should be the one apologising. But we're fixing it. Hopefully next time I come through, you'll be able to thank me instead."

That exchange has stuck with me. Because that man wasn't complaining about fighting financial crime. He was complaining about paperwork that made no difference to anyone, least of all criminals. And he was right.

The people in this room know that better than anyone. You've been doing the hard work of AML compliance for years, often with one hand tied behind your back.

Three supervisors giving inconsistent guidance. Rules that didn't flex with risk. A system that treated opening a child's savings account with the suspicion that could only be reasonably expected from a high-value international transfer.

I suspect a few of you have your own versions of that currency exchange story.

So let me tell you where we are at.

Since speaking to you all a year ago, I'm pleased to report that our reforms of the AML/CFT system are making great progress. We are on the cusp of making a fundamental structural change to how businesses are supervised and supported.

The system will be more focused on making a difference in detecting and getting crimes off our streets, with less effort on low-risk transactions that do nothing to fight crime. It's designed to make your jobs more effective, more focused, and frankly, more rational.

You all know that our laws and requirements are highly complex, time-consuming and fail to take a truly risk-based approach. My legislative reforms are making leaps and bounds to address this.

What we've already done

The Statutes Amendment Bill came into law last November and made immediate changes to address a number of pain points for businesses. Businesses no longer have to complete strict address verification on low-risk customers.

It's a straightforward change, but for the elderly widow who couldn't open a bank account in her own name because she had no utility bills, her husband had always handled that, it matters enormously.

I hope you and your customers are already seeing the benefits of this amendment too. This is the first of many changes being made to take a common-sense approach to compliance, and cutting unnecessary red tape.

What's happening right now

The next two amendment bills are due to pass into law this week.

I had hoped to have them completed before the Summit. In fact, the third reading debate is already well underway - we got through 10 of the 12 speeches before Parliament rose at the end of the last sitting block in April.

The good news is that all parties have signalled their support, so we're very close to getting these reforms over the line. Watch this space.

The first of those amendment Bills, is the AML/CFT Amendment Bill, it introduces a number of changes, including relaxing customer due diligence requirements for lower-risk family trusts. This Bill also removes the requirement for people to submit a border cash report if they have received cash from someone who physically moved the cash into New Zealand, as this is needless duplication.

These changes will come into effect immediately following the law passing.

The second amendment Bill, the AML/CFT Supervisor and Levy Amendment Bill, is where the reforms are really getting down to business. This amendment will represent the biggest reform in the history of the AML/CFT regime and focuses on structural changes.

Under this law, the Department of Internal Affairs will become the single supervisor of all AML supervisory functions from 1 July 2026. I will leave DIA to talk to you more, later on this morning, about the strategic shifts they will be making.

I am confident the transition from three supervisors to one supervisor will create greater clarity and consistency for industry and ultimately customers

I'm honoured to be leading this change to create a more efficient, effective, and risk-based supervisory structure - one that reduces unnecessary compliance costs for lower-risk businesses and transactions, and removes the need for multi-supervisor efforts.

Over the next year, we will see a single supervisor that is more responsive to ever-changing risks, and better resourced to deliver consistent and timely guidance to support businesses on the front line, where money laundering is happening. With a holistic view across the AML/CFT supervisory environment, DIA will be able to look for and realise opportunities as they arise.

The second component of the Supervisor and Levy Bill, as the name implies, is the levy.

Many of you will have provided feedback on the early design and, more recently, the detailed proposed structure of the levy. Thank you for your input. It's important for officials and me to hear your perspectives.

Officials have spent the past month analysing the submissions and picked out the key themes from their engagements with you. I have received initial advice and can confirm that industry feedback was reflected in that advice and incorporated where practicable. I am looking forward to discussing the final recommendations with my Cabinet colleagues over the next weeks.

As well as enhanced supervision, the levy will pay for resources to invest in better intelligence that will enhance guidance to industry.

Those entities who do end up paying the levy will have a more active role in shaping the performance and direction of the AML system and how the levy is used. This will be based on annual reporting from the Ministry of Justice and regular industry engagements as we turn our attention to developing the next National Strategy from 2031.

The third component of the Supervisor and Levy Bill updates inflexible regulation that can result in ineffective use of our resources and undetected crime. Organised crime syndicates are becoming increasingly innovative, using new methods and emerging technologies to outpace regulation.

Likewise, regulations are not keeping pace with advances in technology and developments within industries. If businesses are following rigid compliance rules that don't keep up with the times or changes in risk, innovation gets stifled.

That gets in the way of business growth and our economy. This Bill will allow agencies to make regulatory changes through alternative forms of secondary legislation such as rules and notices. This will make the system much more agile and responsive to different levels of risk and the changing needs of industry.

Still to come is the fourth and final AML/CFT bill I have instructed officials to develop to deliver further regulatory relief, wider legislative changes to implement international standards required by the Financial Action Task Force, and support law enforcement to tackle organised crime.

Some of the amendments in this Bill will include:

• Reforms to reduce the burden of customer due diligence checks
• Providing regulatory supervision of existing requirements for targeted financial sanctions
• Changes to FIU powers and the offences and penalty regime to ensure they are fit for purpose; and
• changes to Designated Business Group requirements.

My plan is to introduce this Bill to the House later this Parliamentary term.\

National Strategy

Turning my attention now to the National Strategy which I released in February this year. This new National Strategy sets out a four-year work programme and vision for our AML system. The Strategy comes into effect from 1 July this year.

Many of you here today have shaped the development of this document too. Thank you.

It sets a clear direction for the Government's priorities and objectives, and importantly ensures that the system works better for you and your businesses.

The activities in the work programme and wider reforms will be partly funded by the new industry levy. Government contributions most certainly remain. You have been telling Government for some time that the system is not meeting your needs, and requires more funding and resource.

The National Strategy lays out our response. Over the next four years, the Ministry of Justice, Internal Affairs and the New Zealand Financial Intelligence Unit will deliver the work programme, in partnership with industry.

I'll be handing over to the Ministry of Justice shortly to tell you more about this important National Strategy and its delivery.

AML is vital to New Zealand's economic security

While these reforms make tangible changes to cut red tape for individual businesses and customers, at the macro level, the changes make a major contribution to our economic security.

A well-functioning AML system is vital for supporting trade, overseas investment and access to international markets and international banking partners.

You will know that compliance with international standards is incredibly important for our global reputation and financial standing. The Financial Action Task Force's standards apply globally and are becoming tougher.

Other FATF member countries are implementing measures to ensure their businesses trade and invest only with countries that maintain comparable standards.

This sets a strong expectation that New Zealand meets these new international standards in the context of our country's context and risks. We cannot be left behind. We must do our part in the global fight of organised crime, money laundering and terrorist financing.

Government and industry joined up to tackle financial crime

Finally, for me, the key to successfully strengthening the AML/CFT system through these reforms is collaboration and leveraging your expertise. We need people like you who have the experience and knowledge to get involved.

The new hybrid funding model creates a new platform for Government and industry to work together to tackle financial crime.

No single agency, regulator or business can do this in isolation from each other. We'll achieve better results if we work in partnership.

That's why the National Strategy and what it's delivering under the new funding model will be under the microscope and closely monitored to ensure what we are delivering, works for everyone and is achieving results.

You will have an important role to play in shaping these results with your first-hand visibility of customer behaviours, transaction patterns and emerging risks.

Once again, thank you for your ongoing contribution to our shared vision of an AML system that makes it easy to do business and hard to commit crime.

I am excited and proud that this reform programme is on track to deliver the most significant regulatory relief since the Act came into force in 2013.

And next time I go to get foreign currency before a trip - I'm hoping the person behind the counter doesn't need to apologise.

It's been a pleasure to talk to you today, and I hope you enjoy the remainder of the Summit.

Thank you.