Anti-money laundering rules aimed at New Zealand lawyers, accountants

Lawyers, accountants, real estate agents and other "high-value dealers" will be required to report cash transactions to police and vet the identification of clients under strict new anti-money laundering rules proposed by the New Zealand government.

It was estimated that around 1.3 billion NZ dollars (936.26 million U.S. dollars) from the proceeds of fraud and drug offending was laundered each year in New Zealand, said Justice Minister Amy Adams on releasing the proposed law changes for public submissions on Tuesday.

"These reforms alone have the potential to disrupt up to 1.7 billion NZ dollars (1.22 billion U.S. dollars) in fraud and drug crime over the next decade. This will mean less crime and fewer victims," Adams said in a statement.

"Estimates also suggest it may prevent up to 5 billion NZ dollars (3.6 billion U.S. dollars) in broader criminal activity and reduce about 800 million NZ dollars (576.16 million U.S. dollars) in social harm related to the illegal drug trade," said Adams.

"Money laundering is the life-blood of profit-motivated crime. It allows criminals to fund their lifestyle and it fuels re-investment in criminal ventures," she said.

"The reforms will also protect and help New Zealand live up to its reputation as being corruption free and a good place to do business. They will bring us into line with international standards, and help prevent New Zealand becoming a target for overseas money launderers and terrorist financers."

The government intended to have the law passed by mid-2017. Endit