- Hon Nicole McKee
Associate Justice Minister Nicole McKee says the Government is continuing to cut through unnecessary bureaucracy with reforms to the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act, which will make life easier for hard-working Kiwi families managing property through family trusts. "For thousands of New Zealanders, setting up a family trust is part of securing their financial future, especially when it comes to their home. But under the current AML regime, selling a house held in a trust triggers a burdensome level of document verification and compliance checks that has little to do with actual risk," Mrs McKee says. "Families who've worked hard, paid off their mortgage, and saved for the future shouldn't be treated like potential criminals just because they want to move house. Take, for example, a couple who've spent 15 years in the same home, raising their children and gradually paying off their mortgage. Like many Kiwi families, they've placed their home in a Family Trust to help manage and protect their most valuable asset. "If they decide to sell, real estate agents are currently required to collect an overwhelming amount of personal and legal information - including the names and addresses of all beneficiaries, even their children, trustees, and lawyers, along with a detailed explanation and documents to prove how the home was paid for. "Under the new reforms, a real estate agent can apply simplified customer due diligence if the sale is clearly low risk. That could mean only:
"When there's clearly nothing untoward going on, there's no need for invasive investigations or repetitive paperwork." The Government has also directed the future AML/CFT supervisor to issue clear guidance so that real estate agents, lawyers, and accountants know exactly how to apply these simplified checks without fear of penalty. "These changes are about recognising that not all customers carry the same risk and it's time our laws reflected that," Ms McKee says. "New Zealanders who play by the rules, work hard, and save for their future should be supported by the system, not tied up in red tape." This is part of a wider programme of reform to make New Zealand's AML/CFT regime smarter, more proportionate, and focused on genuine risks. |
