National money laundering and terrorism financing risk assessment 2018

Aim: To ensure businesses are aware of the scale and nature of the AML/CFT threat they face in their day-to-day operations.

Outcome: Completing this module may help reporting entities to:

  • Understand the principal money laundering threats and vulnerabilities faced by New Zealand;
  • Review and update their business’ Risk Assessment; and
  • Review and update the policies, procedures, and controls in their AML/CFT Programme in order to manage and monitor ML/TF risks more effectively.

Abstract: The Financial Intelligence Unit (FIU) released the first National Risk Assessment (NRA) in 2010 and the second NRA in 2018. This latest assessment uses a new model where risk is a function of threats, vulnerabilities and consequences. An assessment of the principal threats to NZ, and NZ’s key money laundering vulnerabilities are set out in individual sections of the NRA. The potential consequences, including the potential impact on law enforcement work and NZ’s international reputation, are considered throughout. Particularly useful for reporting entities, are the sector risk assessments produced by each of the three sector supervisors, enabling reporting entities to focus on the sector risks most relevant to them.