Welcome to 'The FinCrime Connection', where we unpack the most significant stories in financial crime.
This month, we delve into significant regulatory changes in New Zealand and their broader implications for the region.
New Zealand's Scam Protection Measures: A Regional Perspective
The New Zealand Banking Association (NZBA) has introduced new scam protection measures for its member banks, effective from 30 November 2025. While these measures are specific to New Zealand, they mirror trends observed in the UK and indicate a broader shift towards proactive financial crime prevention in the region.
Key Measures Include:
- Confirmation of Payee (already in place)
- Pre-transaction warnings
- 24/7 reporting channels
These three steps form the baseline for scam mitigation efforts. But it’s the next two that carry broader implications for AML professionals:
- Identification and response to high-risk transactions
- Sharing Scam Intelligence
These initiatives underscore a shift from reactive to proactive measures in combating financial crime, emphasising real-time detection and inter-bank collaboration.
Identification and response to high-risk transactions
Traditionally, Anti-Money Laundering (AML) regulations have focused on post-transaction reviews. The new NZBA guidelines advocate for real-time analysis, requiring banks to assess transactions as they occur and intervene when suspicious activities are detected, potentially delaying or blocking the transaction.
Implementation Considerations:
- Risk Thresholds: Banks need to determine acceptable risk levels, potentially setting thresholds below which transactions are not analysed due to their low assessed risk.
- High-Risk Factors: Certain elements, such as international payments, may necessitate lower thresholds due to increased risk.
- System Integration: Financial crime software like Jade ThirdEye can provide the necessary analysis, but banks must ensure their systems can act promptly on alerts to delay or block transactions.
This approach requires a collaborative effort between detection systems and banking operations to effectively mitigate risks.
Strengthening Defences Through Shared Scam Intelligence
The NZBA's emphasis on sharing scammer account information aligns with practices in the UK, where organisations like CIFAS facilitate data sharing across sectors. Such collaboration enables banks to access comprehensive fraud data, including details of individuals involved in scams, contact information, and victim reports.
Implementing a CIFAS-like system in New Zealand and Australia could significantly bolster the region's defence against financial crime.
Preparing for the 30 November Deadline
These NZBA measures come into effect on 30 November 2025. This leaves limited time for Banks to plan, test, and implement potentially significant system changes, particularly around transaction blocking capabilities.
How Financial Crime Teams Can Prepare:
- System Upgrades: Evaluate and enhance transaction monitoring systems to support real-time analysis and intervention capabilities.
- Policy Development: Establish clear policies and procedures for identifying and handling high-risk transactions.
- Staff Training: Ensure staff are trained to recognise and respond to potential scams effectively.
- Phased Implementation: Adopt a phased approach, focusing on meeting minimum requirements by the deadline, followed by continuous improvements.
Proactive planning and investment in appropriate technologies are crucial to meet the upcoming regulatory expectations.
Staying Informed: Insights from the UK
To stay ahead of emerging threats, financial crime professionals are encouraged to explore resources from the UK's Financial Intelligence Unit (UKFIU). Their podcasts and the "SARs in Action" magazine provide valuable insights into money laundering, fraud, and Suspicious Activity Reports (SARs).
Access Resources:
- UKFIU Podcasts: Available on Apple, Spotify and YouTube
- SARs in Action Magazine: Available on the National Crime Agency's website. UK Financial Intelligence Unit - National Crime Agency
These resources, while UK-focused, offer relevant information for professionals in Australia and New Zealand aiming to enhance their financial crime prevention strategies.
Stay Ahead in Financial Crime Prevention
The recent developments in New Zealand's banking regulations reflect a global trend towards proactive and collaborative financial crime prevention. As the 30 November 2025 deadline approaches, banks in the region must prioritise system enhancements, policy development, and staff training to meet new expectations.
Join us next month for more insights from The FinCrime Connection, brought to you by Jade ThirdEye.
This blog is based on the May episode of The FinCrime Connection ANZ, hosted by Colin Dixon and Jamie Muir from Jade ThirdEye. Colin, our AML Solution Specialist in New Zealand, has been with Jade ThirdEye since its launch in 2012, bringing deep product and industry expertise. Jamie, Head of Customer Success, has spent the past decade supporting our clients, including four years on the ground in the UK.