Advocating for improved legislative framework
The Real Estate Institute of New Zealand (REINZ) is actively advocating for enhancements to the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) legislative framework.
On July 31, REINZ general counsel Melisa Beight (pictured above) submitted a letter to the office of Minister Nicole McKee, highlighting key points to improve the current regime.
Key proposals from REINZ
REINZ’s letter to the minister outlined four main recommendations:
- Exempt commercial leasing: REINZ urges the government to exclude commercial leasing activities from the AML/CFT regime, focusing on actual financial transactions that pose money laundering risks.
- Avoid double-handling: The institute proposes allowing real estate agents to rely on customer due diligence (CDD) conducted by lawyers and accountants, eliminating redundant efforts.
- Centralised identity database: REINZ advocates for a centralised identity database to enhance CDD efficiency across the sector.
- Focus on higher-risk areas: The institute suggests exempting family trusts from enhanced due diligence (EDD) requirements, focusing efforts on higher-risk areas.
Continued engagement with government
REINZ said it was committed to engaging with the government and stakeholders to make the AML/CFT regime more efficient and risk-based.
“We urge the government to exempt commercial leasing activities from the AML/CFT regime, focusing on actual financial transactions that pose money laundering risks,” Beight said.
REINZ believes that these changes will promote better outcomes in combating financial crime while fostering an environment that supports legitimate business activities.
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