Foreign Minister Gerry Brownlee has announced a significant boost to support Pacific island countries comply with international anti-money laundering standards.
New Zealand is providing $3.6 million to the Asia-Pacific Group on Money Laundering.
“The Group is a collaborative international organisation committed to the effective implementation and enforcement of international standards against money laundering and the financing of terrorism,” Mr Brownlee says.
“In recent years, there has been a global push to tighten anti-money laundering standards, and compliance with the standards has proven complex and costly for most Pacific island countries.
“The group will use the funding to provide Pacific members with technical assistance, including drafting new legislation, training regulators and supervisors of financial and non-financial institutions.
“It will also be used to train law enforcement agencies in investigating and prosecuting financial crime.
“Money laundering diverts essential funds away from the legitimate economy and is often used to fund further criminal activity, including drug and people trafficking.
“These are trans-national issues, so better compliance with standards across our region is in New Zealand’s best interests. Improved compliance will help enhance international confidence in Pacific island economies.
“This investment will reduce operating risks and encourage banks and other financial service providers to invest in the region. It will also reduce risks in key sectors like remittances, tourism, and trade, on which Pacific island economies depend,” Mr Brownlee says.
The activity will run from July 2017-2022 and will mainly cover the 11 Pacific island countries that are members of the Asia/Pacific Group: Cook Islands, Fiji, Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, and Vanuatu.
(By Gerry Brownlee)