NZ money laundering law is small beer for insurance
New Zealand’s proposed anti-money laundering legislation won’t have a material effect on the local insurance sector, according to Insurance Council of NZ CEO Chris Ryan.
Last month the Ministry of Justice released the draft Anti-Money Laundering and Countering Financing of Terrorism Bill, designed to bring NZ up to speed with international best practice outlined by the international Financial Action Task Force.
Experts have warned that a stable democracy, an efficient banking system and the time zone make NZ an attractive potential target for money laundering.
Insurance premium funding is considered the most likely avenue for money laundering within the insurance sector. Premium funding was initially caught in the compliance regime when similar legislation was introduced in Australia, but the industry gained an exemption last month.
But Mr Ryan told insuranceNEWS.com.au the NZ industry has a low exposure to risk and a low take-up by policyholders. “Premium funding isn’t widely prevalent in NZ commercial insurance,” he said.
Last month the Ministry of Justice released the draft Anti-Money Laundering and Countering Financing of Terrorism Bill, designed to bring NZ up to speed with international best practice outlined by the international Financial Action Task Force.
Experts have warned that a stable democracy, an efficient banking system and the time zone make NZ an attractive potential target for money laundering.
Insurance premium funding is considered the most likely avenue for money laundering within the insurance sector. Premium funding was initially caught in the compliance regime when similar legislation was introduced in Australia, but the industry gained an exemption last month.
But Mr Ryan told insuranceNEWS.com.au the NZ industry has a low exposure to risk and a low take-up by policyholders. “Premium funding isn’t widely prevalent in NZ commercial insurance,” he said.