Updates to anti-money laundering guidance, designed with protecting business in mind
2 December 2025
“We want to give industry representatives, tech solution providers, reporting entities and more, the opportunity to help shape the conversation. So, if you’re in law, real estate, finance, or other professional services, these proposed changes especially affect you,” Serge Sabalyak, AML/CFT Director, at the Department of Internal Affairs says.
The Identity Verification Code of Practice gives suggested guidance to businesses assessed as low-to-medium risk, from industries that are vulnerable to financial crime. It contains information like which forms of ID are acceptable to use as customer identification.
“Last revised in 2013, the current Identity Verification Code of Practice doesn’t allow for modern digital ID methods and may be imposing too much of a regulatory burden, especially on our businesses at lower risk. We want to change that,” Mr Sablyak says.
“The Department is preparing new guidance for Government that:
o better provides for digital ways of verifying identity
o future proofs the system to provide for advances in identity verification
o reduces the regulatory burden for reporting entities subject to the Act
o ensures New Zealand is well placed to tackle organised crime.
The new guidance will support the wider reform that’s underway within the anti-money laundering and terrorism financing regime, including DIA becoming the sole industry supervisor.
“Money laundering is a big problem. In New Zealand alone, around $1 billion is laundered every year, while globally the figure is estimated to be $4 trillion”, Mr Sabalyak says.
The public consultation runs between 20 November 2025 to 19 January 2026. The changes will go live in April 2026.
ENDS
Notes for editors:
Planned reform of New Zealand’s AML/CFT regime
Big changes are happening within New Zealand’s AML/CFT regulatory framework, shifting how compliance is overseen, funded and implemented.
The changes are designed to modernise and strengthen the system, ensuring streamlined supervision and supporting more risk-based compliance.
Three key shifts are at the centre of these reforms:
· The Department of Internal Affairs will become the sole supervisor enforcing industry regulations (replacing the three-supervisor model: DIA, FMA, and RBNZ). From mid-2026.
· The introduction of an industry-wide levy to fund the regime in a fair and risk-based way. From mid-2027.
· A series of legislative changes will underpin the reforms (e.g. clarifying the obligations and tailoring requirements according to risk) 2025-2027.
Media contact:
Media Desk
Department of Internal Affairs | Te Tari Taiwhenua
Mobile: +64 27 535 8639
Email: media@dia.govt.nz
