Risk assessment of the NZ-to-Pacific Islands money remittance sub-sector

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13 July 2021

The Department of Internal Affairs (the Department) has undertaken a risk assessment of the NZ-to-Pacific Islands money remittance sub-sector.  

The risk assessment finds that the overall money laundering (ML) and terrorism financing (TF) inherent risk rating for the NZ-to-Pacific remittance corridor is Medium.  Further analysis has found that low value (under $1,000) remittance transactions from the Pacific Island diaspora or seasonal workers in NZ to the Pacific Islands for family support, familial or cultural events are assessed to be of Low inherent ML/TF risk.  

This risk assessment was undertaken to help address the challenges facing the remittance sector both within New Zealand, and the Pacific. It will help Pacific-focused money remitters better identify, monitor and mitigate the risks they face and meet their AML/CFT obligations, including reporting suspicious or unusual activity. It will also help other reporting entities and the Department, in its role as the AML/CFT supervisor, understand the risks presented by this sector.  

Reporting entities are reminded that, when conducting their own risk assessments of ML and TF risk, they must have regard to any applicable guidance material produced by AML/CFT supervisors.