Regulatory Alerts2022-05-17
Added · Updated
Reserve Bank Guidance on De-risking and AML/CFT Risk Appetite
The Reserve Bank of New Zealand issued this update to clarify that banks must manage rather than avoid money laundering and terrorism financing risks associated with Money Transfer Operators and Virtual Asset Service Providers. The regulator warns that blanket de-risking forces activity underground, thereby impairing detection efforts and harming financial inclusion for Pacific Island communities. Banks are urged to review their risk appetites and engage with the Reserve Bank to develop measured controls instead of denying services to these sectors.