Simon Power. Pic: NZPA

Wellington, June 25 NZPA - A bill to enhance measures to counter money laundering and the financing of terrorism was introduced to Parliament today.

Justice Minister Simon Power said it would also help tackle financial and drug-related crime by detecting, tracing and seizing profits of domestic organised crime groups.

"The bill is an essential component in New Zealand's ability to investigate organised crime, to follow the money trail through financial systems, and to enable police to use the Criminal Proceeds (Recovery) Act passed by the Government in April to attack those profits," he said.

Mr Power said New Zealand could not be seen as a target for organised criminals and terrorists.

The Anti-Money Laundering and Countering Financing of Terrorism Bill sets out regulatory changes to enable New Zealand to comply with the Financial Action Task Force (FATF), an inter-government body that sets international standards for combating money laundering and terrorist financing.

"Most of New Zealand's financial trading partners are included in the task force, and not implementing its measures puts our international reputation and our access to international financial markets at risk," Mr Power said.

There will be two phases of coverage.

The first will cover financial institutions and casinos and the second will include other industries and professions where money laundering could occur, including lawyers, accountants and real estate agents.

Businesses will be required to make more robust checks on customer identity and verification, and have better systems in place to identify and track suspicious activity.

"Most people will not be directly affected in their ordinary financial transactions and will not notice any significant changes," Mr Power said.