Featured Articles (Mainstream)
The modern anti-money laundering experiment
The global war on money laundering is a failed experiment (and every 'fix' repeats the mistakes of the last) The Conversation, 21 Oct 2019
The original headline for this article: "A criminal asked to design anti-money laundering laws would probably keep our current ones." To cut crime and terrorism, we need a frank conversation about where it has gone wrong. That is not happening right now, with 'solutions' repeating the mistakes of every other 'fundamental rethink' since 1990.
Almost completely ineffective: Money laundering regulations: How and why in-house counsel can make a difference ACC Docket, Jan-Feb 2019
The Washington-DC based Association of Corporate Counsel interviewed Ron Pol about his research, and implications for in-house counsel in over 200 countries
New study: AML=BS? LinkedIn, 24 May 2018
A new study published in an international peer-reviewed journal extends the anti-money laundering industry's open secret
Saying it as you see it: How to lose friends and infuriate people The Startup, in Medium, 27 Feb 2020
Money laundering compliance kills start-ups, wastes good technology, and banks spend trillions with 0.1% impact. But the flip side of failure is opportunity.
Anti-money laundering “almost completely ineffective.” Why it harms us all The Capital, in Medium, 3 Mar 2020
This piece adds some history and geopolitical and ratings perspectives. It’s time to rethink a system that lets criminals keep up to 99.9% of illicit earnings, harms ordinary people, limits solutions, and costs trillions
AML ratings
"Let's improve the capacity to disrupt serious crime, says leading publisher, releasing new studies free to public, LinkedIn, 28 June 2018
In a surprise move, Emerald Publishing, with a global stable of nearly 300 peer-reviewedd scientific journals reelased two articles as 'open access' for the next 3 months.
Laundry wash: FATF ratings clean the toughest stains, LinkedIn, 24 Oct 2018
Leaked results from the UK's mutual evaluation reveal an effectiveness deficit flagged in scientific research
The war on money laundering has failed: Can we fix it? Data Driven Investor, in Medium, 21 Oct 2019
The modern anti-money laundering system (which makes banks and other firms check identity documents and scan billions of financial transactions) doesn’t stop crime. A scheme meant to ‘protect the financial system’ also causes severe social and economic harm. This article also explores some of the geopolitical elements including Caribbean nations, EU, US, Pakistan, Russia, Cuba, Vanuatu, Sudan.
Global ratings fail, by design, but some countries benefit The Capital, in Medium, 12 Mar 2020
Anti-money laundering rating system fundamentally flawed, harms some countries, and lets others 'dial up' better scores on demand.
Westpac
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals The Conversation, 3 Dec 2019
Anti-money laundering rules give the comfort of doing something but prevent surprisingly little crime.
How anti-money laundering successes obscure 'almost complete' failure, The Startup, in Medium, 31 Jan 2020
Enforcement crackdown hides uncomfortable realities. In AUSTRAC v Westpac, a vigorous regulator is tipped to beat its record-breaking penalty against another major bank, amidst “significant” claims against a third. On the other hand, growing enforcement successes obscure uncomfortable realities about the impact on crime.
Panama Papers
10 Panama Papers myths busted & why criminal trusts harm all of us NZ Listener, 9 July 2016 (online 4 July) - PDF
Ron Pol looks at some inconvenient truths about the Panama Papers, and outlines why criminal use of NZ foreign trusts harm all New Zealanders.
Trust Issues: What's blocking effective policy debate about NZ's offshore trusts? Ron Pol, NZ Listener, 5 May 2016 - PDF
The 'Panama Papers' drew heated argument about New Zealand's role, but scant policy debate. This is my shot at an objective, non-partisan view, across the political spectrum.
The global war on money laundering is a failed experiment (and every 'fix' repeats the mistakes of the last) The Conversation, 21 Oct 2019
The original headline for this article: "A criminal asked to design anti-money laundering laws would probably keep our current ones." To cut crime and terrorism, we need a frank conversation about where it has gone wrong. That is not happening right now, with 'solutions' repeating the mistakes of every other 'fundamental rethink' since 1990.
Almost completely ineffective: Money laundering regulations: How and why in-house counsel can make a difference ACC Docket, Jan-Feb 2019
The Washington-DC based Association of Corporate Counsel interviewed Ron Pol about his research, and implications for in-house counsel in over 200 countries
New study: AML=BS? LinkedIn, 24 May 2018
A new study published in an international peer-reviewed journal extends the anti-money laundering industry's open secret
Saying it as you see it: How to lose friends and infuriate people The Startup, in Medium, 27 Feb 2020
Money laundering compliance kills start-ups, wastes good technology, and banks spend trillions with 0.1% impact. But the flip side of failure is opportunity.
Anti-money laundering “almost completely ineffective.” Why it harms us all The Capital, in Medium, 3 Mar 2020
This piece adds some history and geopolitical and ratings perspectives. It’s time to rethink a system that lets criminals keep up to 99.9% of illicit earnings, harms ordinary people, limits solutions, and costs trillions
AML ratings
"Let's improve the capacity to disrupt serious crime, says leading publisher, releasing new studies free to public, LinkedIn, 28 June 2018
In a surprise move, Emerald Publishing, with a global stable of nearly 300 peer-reviewedd scientific journals reelased two articles as 'open access' for the next 3 months.
Laundry wash: FATF ratings clean the toughest stains, LinkedIn, 24 Oct 2018
Leaked results from the UK's mutual evaluation reveal an effectiveness deficit flagged in scientific research
The war on money laundering has failed: Can we fix it? Data Driven Investor, in Medium, 21 Oct 2019
The modern anti-money laundering system (which makes banks and other firms check identity documents and scan billions of financial transactions) doesn’t stop crime. A scheme meant to ‘protect the financial system’ also causes severe social and economic harm. This article also explores some of the geopolitical elements including Caribbean nations, EU, US, Pakistan, Russia, Cuba, Vanuatu, Sudan.
Global ratings fail, by design, but some countries benefit The Capital, in Medium, 12 Mar 2020
Anti-money laundering rating system fundamentally flawed, harms some countries, and lets others 'dial up' better scores on demand.
Westpac
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals The Conversation, 3 Dec 2019
Anti-money laundering rules give the comfort of doing something but prevent surprisingly little crime.
How anti-money laundering successes obscure 'almost complete' failure, The Startup, in Medium, 31 Jan 2020
Enforcement crackdown hides uncomfortable realities. In AUSTRAC v Westpac, a vigorous regulator is tipped to beat its record-breaking penalty against another major bank, amidst “significant” claims against a third. On the other hand, growing enforcement successes obscure uncomfortable realities about the impact on crime.
Panama Papers
10 Panama Papers myths busted & why criminal trusts harm all of us NZ Listener, 9 July 2016 (online 4 July) - PDF
Ron Pol looks at some inconvenient truths about the Panama Papers, and outlines why criminal use of NZ foreign trusts harm all New Zealanders.
Trust Issues: What's blocking effective policy debate about NZ's offshore trusts? Ron Pol, NZ Listener, 5 May 2016 - PDF
The 'Panama Papers' drew heated argument about New Zealand's role, but scant policy debate. This is my shot at an objective, non-partisan view, across the political spectrum.
Featured Articles (Academic)
Anti-money laundering: The world's least effective policy experiment? Together, we can fix it R F Pol, Policy Design and Practice, 2020, Vol 3, No 1
Outlining the full scale of the problem and convenient fictions obscuring uncomfortable truths. This paper finds that the anti-money laundering policy intervention has less than 0.1 percent impact on criminal finances, compliance costs exceed recovered criminal funds more than a hundred times over, and banks, taxpayers and ordinary citizens are penalized more than criminal enterprises. The scale of the problem not addressed by “solutions” repeatedly “fixing” the same perceived issues suggest that blaming banks for not “properly” implementing anti-money laundering laws is a convenient fiction.
Outlining the full scale of the problem and convenient fictions obscuring uncomfortable truths. This paper finds that the anti-money laundering policy intervention has less than 0.1 percent impact on criminal finances, compliance costs exceed recovered criminal funds more than a hundred times over, and banks, taxpayers and ordinary citizens are penalized more than criminal enterprises. The scale of the problem not addressed by “solutions” repeatedly “fixing” the same perceived issues suggest that blaming banks for not “properly” implementing anti-money laundering laws is a convenient fiction.
- Featured in The Economist, 12 April 2021, The war against money-laundering is being lost & The Economist LinkedIn post (with commentary)
- Featured in Forbes, The case against the anti-money laundering rules, David Birch 3 May 2021 (and the author's LinkedIn), Data's double edged: How to use machine learning to solve the problem of unused data in risk management, Gary Shiffman, 16 June 2021
- Also Consilient, USCF Health, Intel deploy confidential computing to safeguard data in use, Venture Beat, 9 April 2021, Bitcoin is our best shot at decentralized finance, Captain Sidd, Bitcoin Magazine, 26 June 2021 (also published on Nasdaq), The anti-money laundering fraud, Alex Tabarrok, Marginal Revolution, 22 Jan 2021, and Reddit (various), eg nansenamundsen
Response to money laundering scandal: Evidence-informed or perception-driven? R F Pol, Journal of Money Laundering Control, 2020, Vol 23, No 1
This article explores what evidence ‘hidden in plain sight’ in official anti-money laundering rating data reveals about EU claims justifying the expansion of money laundering controls in response to European bank scandals. Responding to new crises with superficial solutions without addressing fundamental questions with a multi-disciplinary perspective risks repeating and extending a decades-long cycle of ineffectiveness in efforts to mitigate the social and economic harms from profit-motivated crime.
This article explores what evidence ‘hidden in plain sight’ in official anti-money laundering rating data reveals about EU claims justifying the expansion of money laundering controls in response to European bank scandals. Responding to new crises with superficial solutions without addressing fundamental questions with a multi-disciplinary perspective risks repeating and extending a decades-long cycle of ineffectiveness in efforts to mitigate the social and economic harms from profit-motivated crime.
Anti-money laundering ratings: Uncovering evidence hidden in plain sight R F Pol, Journal of Money Laundering Control, 2019, Vol 22 No 4
Increasing the transparency of information in official anti-money laundering rating data to assist evidence-informed decision-making in compliance, policymaking, and research, this article converts anti-money laundering rating data into information-rich visualisations, reintroduces cross-country and ranks all anti-money laundering regimes evaluated to date.
Increasing the transparency of information in official anti-money laundering rating data to assist evidence-informed decision-making in compliance, policymaking, and research, this article converts anti-money laundering rating data into information-rich visualisations, reintroduces cross-country and ranks all anti-money laundering regimes evaluated to date.
Anti-money laundering effectiveness: Assessing outcomes or ticking boxes? R F Pol, Journal of Money Laundering Control, 2018, Vol 21 No 2
New research exposes the global method for evaluating the effectiveness of anti-money laundering regimes incapable of assessing effectiveness as it intends. There is a dearth of scholarship whether the new global anti-money laundering ‘effectiveness’ framework is sufficiently robust to assess effectiveness as it purports. This article begins addressing that gap. It combines outcomes/effectiveness and anti-money laundering disciplines and uses recent peer-review mutual evaluations to qualitatively assess the Financial Action Task Force’s (FATF's) anti-money laundering ‘effectiveness’ methodology.
Image: Results chain. For research & media fair use only. For commercial use, contact us for permissions
New research exposes the global method for evaluating the effectiveness of anti-money laundering regimes incapable of assessing effectiveness as it intends. There is a dearth of scholarship whether the new global anti-money laundering ‘effectiveness’ framework is sufficiently robust to assess effectiveness as it purports. This article begins addressing that gap. It combines outcomes/effectiveness and anti-money laundering disciplines and uses recent peer-review mutual evaluations to qualitatively assess the Financial Action Task Force’s (FATF's) anti-money laundering ‘effectiveness’ methodology.
Image: Results chain. For research & media fair use only. For commercial use, contact us for permissions
Uncomfortable truths? ML=BS and AML=BS squared R F Pol, Journal of Financial Crime, 2018, Vol 25 No 2
The current AML/CFT model appears almost completely ineffective in disrupting illicit finances and, by implication, serious profit-motivated crime. The proportion of criminal funds seized and forfeited by authorities in sampled jurisdictions, and in Europe and globally, hardly constitutes a rounding error in the accounts of profit-motivated criminal enterprises. Scholars have long exposed a paucity of meaningful links between AML/CFT controls and crime and terrorism prevention, yet the dominant narrative persists largely unchecked. This article examines components of that narrative in the context of scholarship on “bullshit”.
Image: Crime pays. For research & media fair use only. For commercial use, contact us for permissions
The current AML/CFT model appears almost completely ineffective in disrupting illicit finances and, by implication, serious profit-motivated crime. The proportion of criminal funds seized and forfeited by authorities in sampled jurisdictions, and in Europe and globally, hardly constitutes a rounding error in the accounts of profit-motivated criminal enterprises. Scholars have long exposed a paucity of meaningful links between AML/CFT controls and crime and terrorism prevention, yet the dominant narrative persists largely unchecked. This article examines components of that narrative in the context of scholarship on “bullshit”.
Image: Crime pays. For research & media fair use only. For commercial use, contact us for permissions
- Featured in Forbes, 3 May 2021, The case against the anti-money laundering rules, David Birch (and the author's LinkedIn)
Selected coverage of the above articles
The case against the anti-money laundering rules, David Birch, Forbes, 3 May 2021 (and the author's LinkedIn)
Strijd tegen witwassen kost alleen maar geld (PDF), Peet Vogels, 21 April 2021, Algemaan Dagblad (Netherlands)
The war against money-laundering is being lost, The Economist, 12 April 2021 & The Economist LinkedIn post (with commentary)
Anti-money laundering regulations need to work Sapeer Mayron, Samoa Observer, 22 Feb 2019
FATF criticizes 'deliberate' limitation of UK Financial Intelligence Unit, Koos Couvée, ACAMS, 30 Oct 2018 (& Ron Pol post, here).
Taking stock: A decade of drug policy, IDPC, Oct 2018 pp76-77, figure 11 (International Drug Policy Consortium)
AML effectiveness: Assessing outcomes or ticking boxes? Ray Todd, 24 Oct 2018
Research reveals serious issues with Vanuatu's AML/CFT ratings, Vanuatu Daily Post, 29 Sept 2018
Serious issues with Vanuatu's AML/CFT ratings, The Vanuatu Independent, 21 Sept 2018
Uncomfortable truths? Anti-corruption Digest, 6 Sept 2018
Anti-money laundering effectiveness Anti-corruption Digest, 6 Sept 2018
Anti-money laundering (AML) insanity - and asking for trouble Personal Finance NZ Reddit, 1 Sept 2018 (personal examples)
We need to talk about AML, RHT Academy, 12 August 2018
We need to talk about AML effectiveness Sam Gibbins, Complilearn, 2 August 2018
Money laundering in New Zealand Katie Hansen, Zeeland Press, 1 August 2018
No more tax haven in New Zealand? Shakespeare Bay, 24 July 2018
Insight: Money laundering in New Zealand - throwing good money after bad? Jeremy Rose, Radio NZ, 22 July 2018 (audio, 28 mins)
Facing up to ineffectiveness in fight against money laundering, Wiki Tribune, 2 July 2018
AML laws 'waste of time, money' Susan Edmunds, Good Returns, 27 June 2018 & FMA: Gloves are off on AML, 28 June 2018
Anti-money laundering rules "almost completely ineffective", Scoop, 21 June 2018
Study finds AML regulations ineffective, Bryan Pereyo, Sales Antidote AML Solution, 4 June 2018
Phase Two clips money launderers and corrupt officials, Indian Newslink, 3 June 2018
Study finds AML regulations ineffective, eSpear, 1 June 2018
DIA expands for AML/CFT compliance [no link available], NBR Radio, 1 June 2018
Anti-money laundering rules ineffective, Anti-Corruption Digest, 31 May 2018
AML: Next steps after phase 2: Are AML provisions effective? Transparency International NZ, 31 May 2018
New report shows how ineffective anti-money laundering rules are [AUDIO], Larry Williams (Drive), NewsTalk ZB, 30 May 2018
AML rules ineffective, says study, Loabay Global Newsline (Samoa), 29 May 2018
Anti-money laundering rules ineffective, says study, Patrick O'Meara, Radio NZ, 30 May 2018 (text & audio) (republished, NMTA, here) and Gary Hughes comments here, says too early to assess effectiveness
Current AML-CFT controls have barely put a dent in illegal money flows, Bernard Hickey, Newsroom, 25 May 2018
Are anti-money laundering laws ineffective? AML mag, 24 May 2018
Research claiming that AML rules are almost completely ineffective, Ray Todd, May 2018
Ron Pol details his research revealing that AML rules are almost completely ineffective, AML abc, 25 May 2018
New study: AML=BS? LinkedIn, 24 May 2018
New study: ML=BS and AML=BS squared, Interest, 24 May 2018 (republished National Money Transmitters Association, here)
Strijd tegen witwassen kost alleen maar geld (PDF), Peet Vogels, 21 April 2021, Algemaan Dagblad (Netherlands)
The war against money-laundering is being lost, The Economist, 12 April 2021 & The Economist LinkedIn post (with commentary)
Anti-money laundering regulations need to work Sapeer Mayron, Samoa Observer, 22 Feb 2019
FATF criticizes 'deliberate' limitation of UK Financial Intelligence Unit, Koos Couvée, ACAMS, 30 Oct 2018 (& Ron Pol post, here).
Taking stock: A decade of drug policy, IDPC, Oct 2018 pp76-77, figure 11 (International Drug Policy Consortium)
AML effectiveness: Assessing outcomes or ticking boxes? Ray Todd, 24 Oct 2018
Research reveals serious issues with Vanuatu's AML/CFT ratings, Vanuatu Daily Post, 29 Sept 2018
Serious issues with Vanuatu's AML/CFT ratings, The Vanuatu Independent, 21 Sept 2018
Uncomfortable truths? Anti-corruption Digest, 6 Sept 2018
Anti-money laundering effectiveness Anti-corruption Digest, 6 Sept 2018
Anti-money laundering (AML) insanity - and asking for trouble Personal Finance NZ Reddit, 1 Sept 2018 (personal examples)
We need to talk about AML, RHT Academy, 12 August 2018
We need to talk about AML effectiveness Sam Gibbins, Complilearn, 2 August 2018
Money laundering in New Zealand Katie Hansen, Zeeland Press, 1 August 2018
No more tax haven in New Zealand? Shakespeare Bay, 24 July 2018
Insight: Money laundering in New Zealand - throwing good money after bad? Jeremy Rose, Radio NZ, 22 July 2018 (audio, 28 mins)
Facing up to ineffectiveness in fight against money laundering, Wiki Tribune, 2 July 2018
AML laws 'waste of time, money' Susan Edmunds, Good Returns, 27 June 2018 & FMA: Gloves are off on AML, 28 June 2018
Anti-money laundering rules "almost completely ineffective", Scoop, 21 June 2018
Study finds AML regulations ineffective, Bryan Pereyo, Sales Antidote AML Solution, 4 June 2018
Phase Two clips money launderers and corrupt officials, Indian Newslink, 3 June 2018
Study finds AML regulations ineffective, eSpear, 1 June 2018
DIA expands for AML/CFT compliance [no link available], NBR Radio, 1 June 2018
Anti-money laundering rules ineffective, Anti-Corruption Digest, 31 May 2018
AML: Next steps after phase 2: Are AML provisions effective? Transparency International NZ, 31 May 2018
New report shows how ineffective anti-money laundering rules are [AUDIO], Larry Williams (Drive), NewsTalk ZB, 30 May 2018
AML rules ineffective, says study, Loabay Global Newsline (Samoa), 29 May 2018
Anti-money laundering rules ineffective, says study, Patrick O'Meara, Radio NZ, 30 May 2018 (text & audio) (republished, NMTA, here) and Gary Hughes comments here, says too early to assess effectiveness
Current AML-CFT controls have barely put a dent in illegal money flows, Bernard Hickey, Newsroom, 25 May 2018
Are anti-money laundering laws ineffective? AML mag, 24 May 2018
Research claiming that AML rules are almost completely ineffective, Ray Todd, May 2018
Ron Pol details his research revealing that AML rules are almost completely ineffective, AML abc, 25 May 2018
New study: AML=BS? LinkedIn, 24 May 2018
New study: ML=BS and AML=BS squared, Interest, 24 May 2018 (republished National Money Transmitters Association, here)
Revisiting crime rates as a measure of crime prevention effectiveness R F Pol, Inquiries Journal, Vol 8 No 2 (Feb 2016)
Does the 'crime drop' reveal a policy effectiveness 'outcomes' gap? This article constructively critiques crime rates as a policy effectiveness measure. It contends that crime rates retain legitimacy as an ‘output’ measure but does not fully reflect the ultimate ‘outcomes’ intended by crime prevention policies; particularly evident in a new (reduced) crime environment. Policy effectiveness based on the economic and social benefits and reduced harm from less crime offers a more direct line of sight to the effects or impact of crime prevention initiatives as the ultimate policy objectives.
A shorter version is here [PDF]
Cited in The New Zealand Crime Harm Index: Quantifying harm using sentencing data, S Curtis-Ham & D Walton, Policing (Oxford) - published online, 6 November 2017.
Does the 'crime drop' reveal a policy effectiveness 'outcomes' gap? This article constructively critiques crime rates as a policy effectiveness measure. It contends that crime rates retain legitimacy as an ‘output’ measure but does not fully reflect the ultimate ‘outcomes’ intended by crime prevention policies; particularly evident in a new (reduced) crime environment. Policy effectiveness based on the economic and social benefits and reduced harm from less crime offers a more direct line of sight to the effects or impact of crime prevention initiatives as the ultimate policy objectives.
A shorter version is here [PDF]
Cited in The New Zealand Crime Harm Index: Quantifying harm using sentencing data, S Curtis-Ham & D Walton, Policing (Oxford) - published online, 6 November 2017.
Has New Zealand identified the causes of crime? R F Pol, Inquiries Journal, Vol 8 No 2 (Feb 2016)
A constructive critique of The 5 Drivers of Crime in a policy effectiveness context, exploring the development of a construct described as "the underlying causes of offending and victimisation."
Update: Police launched an updated Prevention First strategy in July 2017, confirming that they now recognise the five drivers of crime as drivers of demand.
Refer: Business as usual - but different, 10 July 2017, Prevention First: National Operating Model 2017, July 2017
A constructive critique of The 5 Drivers of Crime in a policy effectiveness context, exploring the development of a construct described as "the underlying causes of offending and victimisation."
Update: Police launched an updated Prevention First strategy in July 2017, confirming that they now recognise the five drivers of crime as drivers of demand.
Refer: Business as usual - but different, 10 July 2017, Prevention First: National Operating Model 2017, July 2017
Other Articles - AML
Inside the UK's Suspicious Activity Report regime, 18 Oct 2022, Roger Hamilton-Martin, Financial Crime Digest (FCD full edition, Sept 2022)
Despite ongoing reforms, some SAR regime observers say policymakers should go further than tinkering, suggesting radical overhauls are needed to AML policy to produce effective results against financial crime.
Despite ongoing reforms, some SAR regime observers say policymakers should go further than tinkering, suggesting radical overhauls are needed to AML policy to produce effective results against financial crime.
Has our anti-money laundering regime gone too far? Diana Clement, Interest.co.nz - from ADLS LawNews
Diana Clement chases down the pressures on businesses arising out of new AML laws and regulations. Is it a war that isn't working or just the price for a cleaner civil society?
Diana Clement chases down the pressures on businesses arising out of new AML laws and regulations. Is it a war that isn't working or just the price for a cleaner civil society?
"AML is the least effective anti-crime measure anywhere, ever" Carl Brown, FinCrime World, 19 May 2021 (and GRC LinkedIn post here & here, and Steve Watson post here)
Dr Ron Pol does not hold back when describing his view of current thinking behind tackling financial crime globally.
(Ron: The classic "unauthorized version". Good thing I never saw a draft. Ouch. Still, it's mostly right, and the inelegant bits make me wince, but I must own them).
Dr Ron Pol does not hold back when describing his view of current thinking behind tackling financial crime globally.
(Ron: The classic "unauthorized version". Good thing I never saw a draft. Ouch. Still, it's mostly right, and the inelegant bits make me wince, but I must own them).
Winners and losers in the latest AML scorecard, Victoria Young, Business Desk, 7 May 2021 (paywall)
Mention anti-money laundering regulation to anyone in the finance, legal, or accounting sectors and you won’t hear anything but groans. Too costly, doesn’t do anything, my clients aren’t the bad guys – the list goes on and on. It doesn’t help academics with PhDs on the subject continue to protest that the global regime is ineffective – for example, New Zealand’s Ron Pol, whose latest estimate is that globally, anti-money laundering intervention has less than 0.05% impact on criminal finances. Anyway, we are stuck with the regime, and its good for Kiwi companies selling software.
Mention anti-money laundering regulation to anyone in the finance, legal, or accounting sectors and you won’t hear anything but groans. Too costly, doesn’t do anything, my clients aren’t the bad guys – the list goes on and on. It doesn’t help academics with PhDs on the subject continue to protest that the global regime is ineffective – for example, New Zealand’s Ron Pol, whose latest estimate is that globally, anti-money laundering intervention has less than 0.05% impact on criminal finances. Anyway, we are stuck with the regime, and its good for Kiwi companies selling software.
The war against money laundering is being lost The Economist, 12 April 2021
The global system for financial crime is hugely expensive and largely ineffective. Features Ron Pol's 2020 research study, AML: The world's least effective policy experiment? Together, we can fix it
The global system for financial crime is hugely expensive and largely ineffective. Features Ron Pol's 2020 research study, AML: The world's least effective policy experiment? Together, we can fix it
AUSTRAC bank probe failure, Natalie O'Brien, Herald Sun, 4 May 2020 [PDF]
FINANCIAL crimes watchdog Austrac has been called “hopeless” after its case against Westpac —over 23 million breaches of money laundering laws and giving a free pass to 12 customers potentially committing child sex crimes —resulted in a single charge.
FINANCIAL crimes watchdog Austrac has been called “hopeless” after its case against Westpac —over 23 million breaches of money laundering laws and giving a free pass to 12 customers potentially committing child sex crimes —resulted in a single charge.
Global ratings fail, by design, but some countries benefit The Capital, by Medium, 11 March 2020 (LinkedIn post)
Anti-money laundering rating system fundamentally flawed, harms some countries, and lets others 'dial up' better scores on demand
Anti-money laundering rating system fundamentally flawed, harms some countries, and lets others 'dial up' better scores on demand
International assessors probe our AML regime: Why AML compliance won't cut crime Rod Vaughan, LawNews, 6 March 2020 (LinkedIn post)
“We need to have an honest conversation about what’s wrong with [the AML system], including the possibility that much of it is a waste of time, and some of it might be doing more harm than good."
“We need to have an honest conversation about what’s wrong with [the AML system], including the possibility that much of it is a waste of time, and some of it might be doing more harm than good."
Good health outcomes are what matter, not easy targets Medium, 5 March 2020
When medical targets focus on processes rather than better health outcomes we should all be concerned. (Republished, modified).
When medical targets focus on processes rather than better health outcomes we should all be concerned. (Republished, modified).
Anti-money laundering “almost completely ineffective.” Why it harms us all The Capital, by Medium, 3 Mar 2020 (LinkedIn post)
It’s time to rethink a system that lets criminals keep up to 99.9% of illicit earnings, harms ordinary people, limits tech solutions, and costs trillions.
It’s time to rethink a system that lets criminals keep up to 99.9% of illicit earnings, harms ordinary people, limits tech solutions, and costs trillions.
Saying it as you see it: How to lose friends and infuriate people The Startup, by Medium, 26 Feb 2020 (LinkedIn post)
Money laundering compliance kills start-ups, wastes good technology, and banks spend trillions with 0.1% impact. But the flip side of failure is opportunity
Known republications/ reshaping
How governments can enable the anti-money laundering system to have a real impact on serious, profit-motivated crime, The Mandarin, 2 March
AML controls are ineffective at stopping crime, says policy expert, Manesh Samtani, Regulation Asia, 4 March
Money laundering compliance kills start-ups, wastes good technology, and banks spend trillions with 0.1% impact. But the flip side of failure is opportunity
Known republications/ reshaping
How governments can enable the anti-money laundering system to have a real impact on serious, profit-motivated crime, The Mandarin, 2 March
AML controls are ineffective at stopping crime, says policy expert, Manesh Samtani, Regulation Asia, 4 March
How anti-money laundering successes obscure 'almost complete' failure, The Startup, by Medium, 31 Jan 2020
Enforcement crackdown hides uncomfortable realities. Next month, Westpac’s new chairman faces Australia’s “biggest breach of anti-money laundering laws”, but there’s more at stake — in every country affected by such laws — than most reports suggest. A vigorous regulator is tipped to beat its record-breaking penalty against another major bank, amidst “significant” claims against a third. On the other hand, growing enforcement successes obscure uncomfortable realities about the impact on crime.
Enforcement crackdown hides uncomfortable realities. Next month, Westpac’s new chairman faces Australia’s “biggest breach of anti-money laundering laws”, but there’s more at stake — in every country affected by such laws — than most reports suggest. A vigorous regulator is tipped to beat its record-breaking penalty against another major bank, amidst “significant” claims against a third. On the other hand, growing enforcement successes obscure uncomfortable realities about the impact on crime.
Experts warn 'inconsistent' laws make luxury goods an easy target for money laundering Andrew Taylor, Sydney Morning Herald, 29 Dec 2019
Experts have warned laws to prevent money laundering and terrorist financing are weak and "inconsistent", with criminals adding luxury goods to their shopping list of items to purchase with the proceeds of crime. But legal experts warn increased regulation may infringe on privacy without halting the flow of dirty money...Ronald Pol, a senior researcher at LaTrobe University, said Westpac's alleged 23 million breaches of anti-money laundering laws highlighted failures with the system as well as the bank’s lack of compliance with reporting rules."The modern anti-money laundering experiment finds some criminals but is terrible at finding enough to have any real impact on crime. Banks are a much easier target for regulators," Dr Pol wrote in The Conversation.
Experts have warned laws to prevent money laundering and terrorist financing are weak and "inconsistent", with criminals adding luxury goods to their shopping list of items to purchase with the proceeds of crime. But legal experts warn increased regulation may infringe on privacy without halting the flow of dirty money...Ronald Pol, a senior researcher at LaTrobe University, said Westpac's alleged 23 million breaches of anti-money laundering laws highlighted failures with the system as well as the bank’s lack of compliance with reporting rules."The modern anti-money laundering experiment finds some criminals but is terrible at finding enough to have any real impact on crime. Banks are a much easier target for regulators," Dr Pol wrote in The Conversation.
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals The Conversation, 3 Dec 2019
Anti-money laundering rules give the comfort of doing something but prevent surprisingly little crime.
Known republications
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals, Medium, 3 Dec 2019
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals, The Mandarin, 3 Dec 2019
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals, Please Be Informed, 3 Dec 2019
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals, KYC360/Risk Screen, 5 Dec 2019
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals, Flipboard, 3 Dec 2019
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals, Business Daily Media, 3 Dec 2019
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals, Middle East North Africa Financial Network (MENAFN), 3 Dec 2019
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals, News on Compliance, 3 Dec 2019
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals, Evening Report, 3 Dec 2019
Westpac ticking every anti-money laundering box wouldn't have made much difference to criminals, Australian Online News, 3 Dec 2019
FATF mutual evaluation of New Zealand remains scheduled for 2020 Gareth Vaughan, Interest, 21 Nov 2019
FATF has paused the 5-year reviews of mutual evaluations, pending its strategic review. Ron Pol wonders if FATF has doubts about its effectiveness methodology, which his research demonstrates as flawed from the outset. Some countries have also learned that the system can be used to 'dial up' just about any rating required, and there's evidence that these techniques are starting to spread.
FATF's David Lewis' remarks at meeting on FATF strategic review, dated 18 Nov 2019 but not posted until later (not found in a search of FATF website 20 Nov when quoted for Interest piece, but consistent)
International body suspends anti-money laundering evaluations, Nathan Lynch, LinkedIn, 20 Nov
FATF has paused the 5-year reviews of mutual evaluations, pending its strategic review. Ron Pol wonders if FATF has doubts about its effectiveness methodology, which his research demonstrates as flawed from the outset. Some countries have also learned that the system can be used to 'dial up' just about any rating required, and there's evidence that these techniques are starting to spread.
FATF's David Lewis' remarks at meeting on FATF strategic review, dated 18 Nov 2019 but not posted until later (not found in a search of FATF website 20 Nov when quoted for Interest piece, but consistent)
International body suspends anti-money laundering evaluations, Nathan Lynch, LinkedIn, 20 Nov
The global war on money laundering is a failed experiment The Conversation, 21 Oct 2019 - also on LinkedIn, here
The war on money laundering is a failed experiment. To cut crime and terrorism, we need a frank conversation about where it has gone wrong.
Former headline: A criminal asked to design anti-money laundering laws would probably keep- our current ones
Known republications:
A criminal asked to design anti-money laundering laws would probably keep our current ones, Medium, 21 Oct 2019
A criminal asked to design our anti-money laundering laws would probably keep the ones we’ve got, KYC360, Risk Screen, 22 Oct 2019
A criminal asked to design Australia's anti-money laundering laws would probably keep the ones we have, The Mandarin, 23 Oct 2019
A criminal asked to design our anti-money laundering laws would probably keep the ones we've got, Foreign Affairs, 22 Oct 2019 (also at The Evening Report, here)
A criminal asked to design our anti-money laundering laws would probably keep the ones we've got, Business Daily Media, 21 Oct 2019
A criminal asked to design anti-money laundering laws would probably keep the ones we've got, Middle East North Africa Financial Network (MENAFN), 21 Oct 2019
The war on money laundering is a failed experiment. To cut crime and terrorism, we need a frank conversation about where it has gone wrong.
Former headline: A criminal asked to design anti-money laundering laws would probably keep- our current ones
Known republications:
A criminal asked to design anti-money laundering laws would probably keep our current ones, Medium, 21 Oct 2019
A criminal asked to design our anti-money laundering laws would probably keep the ones we’ve got, KYC360, Risk Screen, 22 Oct 2019
A criminal asked to design Australia's anti-money laundering laws would probably keep the ones we have, The Mandarin, 23 Oct 2019
A criminal asked to design our anti-money laundering laws would probably keep the ones we've got, Foreign Affairs, 22 Oct 2019 (also at The Evening Report, here)
A criminal asked to design our anti-money laundering laws would probably keep the ones we've got, Business Daily Media, 21 Oct 2019
A criminal asked to design anti-money laundering laws would probably keep the ones we've got, Middle East North Africa Financial Network (MENAFN), 21 Oct 2019
The war on money laundering has failed: Can we fix it? Medium 21 Oct 2019 - also on LinkedIn, here
The modern anti-money laundering system (which makes banks and other firms check identity documents and scan billions of financial transactions) doesn’t stop crime. Criminals keep up to 99% of the earnings from misery, and a scheme meant to ‘protect the financial system’ causes severe social and economic harm.
The war on money laundering has failed, Evening Report, 30 Oct 2019
The modern anti-money laundering system (which makes banks and other firms check identity documents and scan billions of financial transactions) doesn’t stop crime. Criminals keep up to 99% of the earnings from misery, and a scheme meant to ‘protect the financial system’ causes severe social and economic harm.
The war on money laundering has failed, Evening Report, 30 Oct 2019
Look back - a global AML/CFT appraisal Paul Cochrane, Money Laundering Bulletin, 24 Jun 2019
July 2019 marks FATF's 30th anniversary. How effective is it? MLB interviews Ron Pol and others. Part of the problem is that "nation states follow the FATF mandate because they have to, not because it's effective on crime. Astonishingly, despite the stated desired policy outcomes, the question of effectiveness in that context - crime prevention - is seldom asked in the AML realm.. The impact on serious crime is scarcely even a rounding error in criminal accounts. We need to move from 0.1% impact into the 99.9% zone." Another problem is that the new effectiveness methodology "uses the language of policy effectiveness and outcomes but not the science. It is not an effectiveness methodology as it purports."
July 2019 marks FATF's 30th anniversary. How effective is it? MLB interviews Ron Pol and others. Part of the problem is that "nation states follow the FATF mandate because they have to, not because it's effective on crime. Astonishingly, despite the stated desired policy outcomes, the question of effectiveness in that context - crime prevention - is seldom asked in the AML realm.. The impact on serious crime is scarcely even a rounding error in criminal accounts. We need to move from 0.1% impact into the 99.9% zone." Another problem is that the new effectiveness methodology "uses the language of policy effectiveness and outcomes but not the science. It is not an effectiveness methodology as it purports."
Money mystery: Secrecy over $300,000 seized from member of a foreign delegation invited to New Zealand, Jared Savage, NZ Herald, 30 April 2019 [paywall]
An anonymous tip prompted investigations which confirmed a member of a foreign delegation failed to declare a large sum of cash.
Customs returns nearly $302k to foreign diplomat who failed to declare cash in breach of money laundering laws, Jared Savage, NZ Herald, 7 July
Mystery money: Seized $302k given back to foreign diplomat, Newstalk ZB, 7 July 2019 Politics Central with Tim Wilson & Francesca Rudkin, Audio at 4.04pm (7:19)
An anonymous tip prompted investigations which confirmed a member of a foreign delegation failed to declare a large sum of cash.
Customs returns nearly $302k to foreign diplomat who failed to declare cash in breach of money laundering laws, Jared Savage, NZ Herald, 7 July
Mystery money: Seized $302k given back to foreign diplomat, Newstalk ZB, 7 July 2019 Politics Central with Tim Wilson & Francesca Rudkin, Audio at 4.04pm (7:19)
Anti-money laundering regulations need to work Sapeer Mayron, Samoa Observer, 22 Feb 2019
The blacklisting by the European Commission over anti-money laundering processes will have next to no impact on crime, and may get in the way of actually trying to reduce crime as Samoa focuses on trying to get off the blacklist and reduce the damage to legitimate businesses and citizens.
EU blacklisting Samoa surprising (says KlickEx Robert Maxwell), Sapeer Mayron, Samoa Observer, 27 Feb 2019
Samoa's anti-money laundering regulations need to work, Fiji Sun, 23 Feb 2019
Editorial: The European Union's 'blacklist' and why it's so absurd, Alexander Rheeney, Samoa Observer, 22 Feb 2019
Maiava highlights concerns in EU blacklisting, Sapeer Mayron, Samoa Observer, 21 Feb 2019
Editorial: Remittances, Samoans abroad and the concept of tautua, Mata'afa Keni Lesa, Samoa Observer, 16 Feb 2019
The blacklisting by the European Commission over anti-money laundering processes will have next to no impact on crime, and may get in the way of actually trying to reduce crime as Samoa focuses on trying to get off the blacklist and reduce the damage to legitimate businesses and citizens.
EU blacklisting Samoa surprising (says KlickEx Robert Maxwell), Sapeer Mayron, Samoa Observer, 27 Feb 2019
Samoa's anti-money laundering regulations need to work, Fiji Sun, 23 Feb 2019
Editorial: The European Union's 'blacklist' and why it's so absurd, Alexander Rheeney, Samoa Observer, 22 Feb 2019
Maiava highlights concerns in EU blacklisting, Sapeer Mayron, Samoa Observer, 21 Feb 2019
Editorial: Remittances, Samoans abroad and the concept of tautua, Mata'afa Keni Lesa, Samoa Observer, 16 Feb 2019
Almost completely ineffective: Money laundering regulations: How and why in-house counsel can make a difference
ACC Docket, Jan-Feb 2019 - the Association of Corporate Counsel interviewed Ron Pol about his research, and implications for in-house counsel in over 200 countries
ACC Docket, Jan-Feb 2019 - the Association of Corporate Counsel interviewed Ron Pol about his research, and implications for in-house counsel in over 200 countries
FATF criticizes 'deliberate' limitation of UK Financial Intelligence Unit Koos Couvée, ACAMS, 30 Oct 2018 (& Ron Pol post, here)
Amid the mostly positive results in its pending report on the UK, FATF has singled the country out for considerable criticism, especially for its “deliberate” choice to sideline its financial intelligence unit.... The apparent disconnect between FATF’s mostly positive take and London’s generally poor reputation may also cast doubt over the methods for assessing countries, and potentially raise suspicion that the mutual evaluation process lies subordinate to politics. “The framework is not an effectiveness framework,” said Ron Pol, “It uses the word ‘outcomes’ but they are not outcomes or even outputs, they’re mainly activity measures.”
Amid the mostly positive results in its pending report on the UK, FATF has singled the country out for considerable criticism, especially for its “deliberate” choice to sideline its financial intelligence unit.... The apparent disconnect between FATF’s mostly positive take and London’s generally poor reputation may also cast doubt over the methods for assessing countries, and potentially raise suspicion that the mutual evaluation process lies subordinate to politics. “The framework is not an effectiveness framework,” said Ron Pol, “It uses the word ‘outcomes’ but they are not outcomes or even outputs, they’re mainly activity measures.”
Laundry-wash: FATF ratings clean the toughest stains Interest.co.nz, 24 Oct 2018 (here) & later (slightly modified) LinkedIn and PDF version
More than 120 jurisdictions' AML/CFT systems will be evaluated in the next decade. Leaked results from the UK's 'mutual evaluation' reveals an effectiveness deficit flagged in scientific research, and opportunities for countries to boost FATF ratings.
Also Laundry-wash: FATF ratings clean the toughest stains and a look at the apparent dichotomy between 'theoretical standards and observable activity', Brian Monroe, ACFCS News, 9 November 2018
More than 120 jurisdictions' AML/CFT systems will be evaluated in the next decade. Leaked results from the UK's 'mutual evaluation' reveals an effectiveness deficit flagged in scientific research, and opportunities for countries to boost FATF ratings.
Also Laundry-wash: FATF ratings clean the toughest stains and a look at the apparent dichotomy between 'theoretical standards and observable activity', Brian Monroe, ACFCS News, 9 November 2018
Should anti-money laundering law have a role in tackling international fraud? Gareth Vaughan, Interest, 17 October 2018
When a customer is conned by a fraudster & in an out of character move sends significant sums of money overseas, does a NZ bank have any AML-CFT Act responsibilities. References Ron Pol research.
Ron Pol comment: The legislation focuses "on requiring businesses like banks to collect and report information", a classic tick-box compliance exercise, with 'compliance solutions providers' reaping tens of millions in fees annually. The uncomfortable truth is that NZ's legislation was (demonstrably) not designed with any observable critical, imaginative, 'criminal', or contemporary thinking, nor principles of policy effectiveness. As to the latter, that is not just if we have rules, if they meet standards, or if firms comply with them (all of which NZ's system does well), but whether it's calibrated to achieve the underlying policy objective, which NZ's system doesn't do at all (unless the objective was solely political or supremely underwhelming, ie to cauterise political pressure prompted by Panama Papers by giving the appearance of a meaningful response absent substance, and/or get the FATF tick; & in either case incidentally to have the slightest possible impact on serious profit-motivated crime). That's why my own focus mostly pivoted internationally.
When a customer is conned by a fraudster & in an out of character move sends significant sums of money overseas, does a NZ bank have any AML-CFT Act responsibilities. References Ron Pol research.
Ron Pol comment: The legislation focuses "on requiring businesses like banks to collect and report information", a classic tick-box compliance exercise, with 'compliance solutions providers' reaping tens of millions in fees annually. The uncomfortable truth is that NZ's legislation was (demonstrably) not designed with any observable critical, imaginative, 'criminal', or contemporary thinking, nor principles of policy effectiveness. As to the latter, that is not just if we have rules, if they meet standards, or if firms comply with them (all of which NZ's system does well), but whether it's calibrated to achieve the underlying policy objective, which NZ's system doesn't do at all (unless the objective was solely political or supremely underwhelming, ie to cauterise political pressure prompted by Panama Papers by giving the appearance of a meaningful response absent substance, and/or get the FATF tick; & in either case incidentally to have the slightest possible impact on serious profit-motivated crime). That's why my own focus mostly pivoted internationally.
'Hot money' from China adding to housing affordability problem Su-Lin Tan, Australian Financial Review (AFR), 9 Oct 2018
Australia's failure to pass tougher laws on potential money laundering through real estate agents, lawyers and accountants could continue to inflate the housing market defeating macroprudential attempts to cool the market, anti-money laundering experts say. "Unfortunately, there's no reliable data on the extent to which this is happening" said Nathan Lynch. "I think that's a significant part of the reluctance to take action." Most agents no longer accept "suitcases of cash", but Dr Ron Pol says just because it has gone through a bank doesn't mean the money is "clean".
Also published in Viral News Trends and Property Nerd
Australia's failure to pass tougher laws on potential money laundering through real estate agents, lawyers and accountants could continue to inflate the housing market defeating macroprudential attempts to cool the market, anti-money laundering experts say. "Unfortunately, there's no reliable data on the extent to which this is happening" said Nathan Lynch. "I think that's a significant part of the reluctance to take action." Most agents no longer accept "suitcases of cash", but Dr Ron Pol says just because it has gone through a bank doesn't mean the money is "clean".
Also published in Viral News Trends and Property Nerd
Crackdown on money laundering: New Zealand cleans up its dirty money Nina Hendy IntheBlack (CPA Australia), 6 Sept 2018
"Suspect financial transactions are being scrutinised and then stamped out in New Zealand under its money laundering laws. Here’s why Australian accountants need to take notice"
Ron Pol comment 1
There is a different perspective. Focused on policy effectiveness. (Not just do we have laws, or do they meet standards, or even if firms comply with them, but do they work? Do they achieve the policy objective?) Here's a recent Radio NZ documentary that tried to scratch below the surface of the official narrative unreflectively parroted: Insight: Money laundering in New Zealand: Throwing good money after bad?
Ron Pol comment 2
Two recent articles in international peer-reviewed journals (free PDF download, to 28 Sept) examine AML effectiveness. One specifically addresses the extension of ML controls to professionals in NZ, AU, UK, CAD, with global and EU comparators. The other draws from Australian and Canadian 'AML 'effectiveness' evaluations:
Uncomfortable truths? ML=BS & AML=BS squared, Journal of Financial Crime: https://doi.org/10.1108/JFC-08-2017-0071
Anti-money laundering effectiveness: Assessing outcomes or ticking boxes? Journal of Money Laundering Control: http://dx.doi.org/10.1108/JMLC-07-2017-0029
Both papers were drawn from a PhD thesis at Griffith University, QLD, supervised and examined by world leading professors in AU and overseas. (Any remaining errors are mine alone)
"Suspect financial transactions are being scrutinised and then stamped out in New Zealand under its money laundering laws. Here’s why Australian accountants need to take notice"
Ron Pol comment 1
There is a different perspective. Focused on policy effectiveness. (Not just do we have laws, or do they meet standards, or even if firms comply with them, but do they work? Do they achieve the policy objective?) Here's a recent Radio NZ documentary that tried to scratch below the surface of the official narrative unreflectively parroted: Insight: Money laundering in New Zealand: Throwing good money after bad?
Ron Pol comment 2
Two recent articles in international peer-reviewed journals (free PDF download, to 28 Sept) examine AML effectiveness. One specifically addresses the extension of ML controls to professionals in NZ, AU, UK, CAD, with global and EU comparators. The other draws from Australian and Canadian 'AML 'effectiveness' evaluations:
Uncomfortable truths? ML=BS & AML=BS squared, Journal of Financial Crime: https://doi.org/10.1108/JFC-08-2017-0071
Anti-money laundering effectiveness: Assessing outcomes or ticking boxes? Journal of Money Laundering Control: http://dx.doi.org/10.1108/JMLC-07-2017-0029
Both papers were drawn from a PhD thesis at Griffith University, QLD, supervised and examined by world leading professors in AU and overseas. (Any remaining errors are mine alone)
Northland fraudster was forbidden from running a company in the first place Helen Castles, TVNZ 1News, 29 July 2018
Brief clip of Ron Pol interview. It has long been easy to use the companies register for unlawful purposes.
Brief clip of Ron Pol interview. It has long been easy to use the companies register for unlawful purposes.
'Businesses are not doing this because they think you are laundering money' Jenée Tibshraeny, Interest, 25 July 2018
Government launches campaign to keep public in the loop as lawyers, accountants and real estate agents need to start complying with anti-money laundering rule. Ron Pol responds to commentators.
Also Justice Minister Andrew Little fronts Govt campaign to thwart money laundering Newshub, 26 July 2018. Minister says that ML is "up to $5 billion a year" [audio 0:20], and that "the previous government started these anti-money laundering regulations because of international agreements that we entered into. We're now into the second phase" [2:15]. Curiously, the Minister says the regulations are about transactions "where there is a large dollop of cash involved" [1:05], such as "running some cash through a friendly car salesman" [1:46] and is about "cash obtained from ill-gotten ways" [1:51], When the TAB enters the regime next year "what it means is that the teller at the TAB is going to ask for some ID and the TAB then has to keep track of those big cash transactions" [2.34]. Also "the outfit that keeps most track of it is the Financial Intelligence Unit at Police, and really what they're just tracking is big cash transactions in unusual situations. So, a car-dealer somewhere all of a sudden has multiple $100,000 transactions over a short period of time. That's going to raise a few red flags. And the Police are probably going to come and knock on your door and ask the dealer a few questions. It's that sort of stuff" [2:55]
Government launches campaign to keep public in the loop as lawyers, accountants and real estate agents need to start complying with anti-money laundering rule. Ron Pol responds to commentators.
Also Justice Minister Andrew Little fronts Govt campaign to thwart money laundering Newshub, 26 July 2018. Minister says that ML is "up to $5 billion a year" [audio 0:20], and that "the previous government started these anti-money laundering regulations because of international agreements that we entered into. We're now into the second phase" [2:15]. Curiously, the Minister says the regulations are about transactions "where there is a large dollop of cash involved" [1:05], such as "running some cash through a friendly car salesman" [1:46] and is about "cash obtained from ill-gotten ways" [1:51], When the TAB enters the regime next year "what it means is that the teller at the TAB is going to ask for some ID and the TAB then has to keep track of those big cash transactions" [2.34]. Also "the outfit that keeps most track of it is the Financial Intelligence Unit at Police, and really what they're just tracking is big cash transactions in unusual situations. So, a car-dealer somewhere all of a sudden has multiple $100,000 transactions over a short period of time. That's going to raise a few red flags. And the Police are probably going to come and knock on your door and ask the dealer a few questions. It's that sort of stuff" [2:55]
Anti-money laundering expert sceptical of new Government campaign Kate Hawkesby interviews Ron Pol, NewsTalkZB, 25 July 2018 (& LinkedIn)
New Zealand's new AML awareness campaign (a mishmash of platitudes and misperceptions, with a few good bits) lacks clear objectives. If it's about crime prevention, policymakers should ask officials to produce evidence that unreflective adherence to the "education about compliance with rules based on standards" mantra, demonstrably ineffective, will magically have the big impact on crime claimed, when it hasn't anywhere. Ignoring decades of science, and the United Nations and Europol. Even Dynamo would have trouble pulling that non-existent rabbit out of a hat.
Also An anti-money laundering expert says a new Government campaign lacks clarity, NZ City, 26 July 2018
Justice Minister Andrew Little responds
Govt considering citizens' jury over cannabis reform, Kate Hawkesby interviews Andrew Little, NewsTalkZB, 25 July 2018 (& LinkedIn). Ironically, after suggesting an innovative prospect for evidence-informed cannabis law reform, & advocating "effective" family violence solutions (3:10 in the audio), Minister describes AML education campaign (from 3:22) as identification checks to track cash transactions. Disregarding decades of science & evidence. Cash from retail drug sales is a fraction of crime funds through electronic transactions. Evidence also reveals many examples of criminals using their own names & verifiable fronts. So, lawyers will tick boxes 'proving' compliance, and criminals will successfully launder, 'proving' wealth as property developers. With citizens mostly disrupted. So the campaign's unintended effect may be to quell public discontent. Crafted in a critical thinking & imagination free zone, rules and a campaign driven by unfounded assumptions disconnected from science & evidence disregard a key issue in public policy - whether policies will be effective. Does the Minister really intend to extend AML's exemption from the critical eye of evidence-informed policy effectiveness he seeks to apply elsewhere?
New Zealand's new AML awareness campaign (a mishmash of platitudes and misperceptions, with a few good bits) lacks clear objectives. If it's about crime prevention, policymakers should ask officials to produce evidence that unreflective adherence to the "education about compliance with rules based on standards" mantra, demonstrably ineffective, will magically have the big impact on crime claimed, when it hasn't anywhere. Ignoring decades of science, and the United Nations and Europol. Even Dynamo would have trouble pulling that non-existent rabbit out of a hat.
Also An anti-money laundering expert says a new Government campaign lacks clarity, NZ City, 26 July 2018
Justice Minister Andrew Little responds
Govt considering citizens' jury over cannabis reform, Kate Hawkesby interviews Andrew Little, NewsTalkZB, 25 July 2018 (& LinkedIn). Ironically, after suggesting an innovative prospect for evidence-informed cannabis law reform, & advocating "effective" family violence solutions (3:10 in the audio), Minister describes AML education campaign (from 3:22) as identification checks to track cash transactions. Disregarding decades of science & evidence. Cash from retail drug sales is a fraction of crime funds through electronic transactions. Evidence also reveals many examples of criminals using their own names & verifiable fronts. So, lawyers will tick boxes 'proving' compliance, and criminals will successfully launder, 'proving' wealth as property developers. With citizens mostly disrupted. So the campaign's unintended effect may be to quell public discontent. Crafted in a critical thinking & imagination free zone, rules and a campaign driven by unfounded assumptions disconnected from science & evidence disregard a key issue in public policy - whether policies will be effective. Does the Minister really intend to extend AML's exemption from the critical eye of evidence-informed policy effectiveness he seeks to apply elsewhere?
Insight: Money laundering in New Zealand: Throwing good money after bad? Jeremy Rose, Radio NZ, 22 July 2018 (audio, 28 minutes)
"Over the next decade the cost to New Zealand businesses of complying with anti-money laundering legislation is expected to hit $1 billion. But as Jeremy Rose reports, one of the country’s leading anti-money laundering experts says the legislation does virtually nothing to disrupt the proceeds and funding of serious crime."
Comment: As well as the usual narrative from compliance professionals focused on trees they can't see the forest let alone its wood making capacity, the reporter conceptualised the reality. [at 1:15 in the audio]. Presumably referencing a United Nations report (here, p131, final para), he reckoned that if governments were as effective in recovering the proceeds of crime as cocaine, estimated at 40%, it would be "more than enough to feed every malnourished person in the world, and provide clean drinking water". Yet rarely even 1% of crime proceeds is recovered as a result of AML and a panoply of other laws besides. (Here and here). Up to 99.8% is retained by criminals, protecting, sustaining and enabling the continuation and expansion of immense social and economic harms from profit-motivated crime; from drugs-, human-, arms-trafficking, corruption, fraud, labour exploitation, tax evasion and more. Meanwhile, the "compliance with rules based on standards" mantra continues, with its almost complete ineffectiveness eclipsed only by the scale of wilful blindness to more than two decades of scientific research, empirical evidence, and more recently the United Nations, Europol, and a few parliamentarians frankly expressing the scale and scope of its ineffectiveness.
Also in various publications, eg Money laundering in New Zealand, Herdon Gazette, 6 Aug 2018
"Over the next decade the cost to New Zealand businesses of complying with anti-money laundering legislation is expected to hit $1 billion. But as Jeremy Rose reports, one of the country’s leading anti-money laundering experts says the legislation does virtually nothing to disrupt the proceeds and funding of serious crime."
Comment: As well as the usual narrative from compliance professionals focused on trees they can't see the forest let alone its wood making capacity, the reporter conceptualised the reality. [at 1:15 in the audio]. Presumably referencing a United Nations report (here, p131, final para), he reckoned that if governments were as effective in recovering the proceeds of crime as cocaine, estimated at 40%, it would be "more than enough to feed every malnourished person in the world, and provide clean drinking water". Yet rarely even 1% of crime proceeds is recovered as a result of AML and a panoply of other laws besides. (Here and here). Up to 99.8% is retained by criminals, protecting, sustaining and enabling the continuation and expansion of immense social and economic harms from profit-motivated crime; from drugs-, human-, arms-trafficking, corruption, fraud, labour exploitation, tax evasion and more. Meanwhile, the "compliance with rules based on standards" mantra continues, with its almost complete ineffectiveness eclipsed only by the scale of wilful blindness to more than two decades of scientific research, empirical evidence, and more recently the United Nations, Europol, and a few parliamentarians frankly expressing the scale and scope of its ineffectiveness.
Also in various publications, eg Money laundering in New Zealand, Herdon Gazette, 6 Aug 2018
Q&A: Why are banks blocking legitimate payments? Johannes Werner, Cuba Standard, 13 July 2018 - front page image here (full article by subscription only)
Banks are installing automatic filters, and every payment with 'Cuba' gets stopped, even if there's zero risk involved. The approach is called "blanket de-risking". Interview with money laundering expert Dr Ron Pol.
Banks are installing automatic filters, and every payment with 'Cuba' gets stopped, even if there's zero risk involved. The approach is called "blanket de-risking". Interview with money laundering expert Dr Ron Pol.
India's sweeping anti-money laundering agenda comes under scrutiny Jack Barton, Wiki Tribune, 9 July 2018
Money laundering and abuse of sophisticated financial instruments have come under increasing scrutiny from regulators. However observers warn high-profile initiatives often act as a distraction from a lack of genuine political will to tackle global financial crime
Also in Offshore News Flash, 10 July 2018
Money laundering and abuse of sophisticated financial instruments have come under increasing scrutiny from regulators. However observers warn high-profile initiatives often act as a distraction from a lack of genuine political will to tackle global financial crime
Also in Offshore News Flash, 10 July 2018
Lawyers required to report money laundering suspects Ruth Hill, Radio NZ Morning Report, 2 July 2018
As of yesterday Sunday July 1, lawyers are now subject to anti-money laundering legislation, which will require them to dob in clients making suspicious transactions. But at least one expert is dismissing the new law as a box-ticking exercise that won't catch the vast majority of criminals. "Ron Pol, a political scientist and anti money laundering expert, told WikiTribune “‘cracking down’ on shell companies sounds like a smart move. But, people might like to ask whether the authorities’ actions are little more than a shell game itself."
As of yesterday Sunday July 1, lawyers are now subject to anti-money laundering legislation, which will require them to dob in clients making suspicious transactions. But at least one expert is dismissing the new law as a box-ticking exercise that won't catch the vast majority of criminals. "Ron Pol, a political scientist and anti money laundering expert, told WikiTribune “‘cracking down’ on shell companies sounds like a smart move. But, people might like to ask whether the authorities’ actions are little more than a shell game itself."
Almost completely useless Gareth Vaughan, Interest, 30 June 2018
Anti-money laundering expert Ron Pol labels government's reasons for excluding trusts from its beneficial ownership register "remarkable for having been expressed out loud" [There are however more fundamental flaws than the obvious trusts gap, yet there are also a few glimmers of policy effectiveness analysis in limited areas]
Also:
Trusts among 'extremely attractive structures for money launderers and terrorism financiers, Gareth Vaughan, Interest, 4 Dec 2019
MBIE says Cabinet approval for beefed up company beneficial ownership regime to be sought soon, Gareth Vaughan, 1 Nov 2019 - (and LinkedIn post) - Ron Pol earlier slammed the plans as almost completely useless, with a steadfast aversion to critical thinking, evidence and the principles of policy effectiveness
Trusts excluded from government's beneficial ownership push Gareth Vaughan, Interest, 25 June 2018
Anti-money laundering expert Ron Pol labels government's reasons for excluding trusts from its beneficial ownership register "remarkable for having been expressed out loud" [There are however more fundamental flaws than the obvious trusts gap, yet there are also a few glimmers of policy effectiveness analysis in limited areas]
Also:
Trusts among 'extremely attractive structures for money launderers and terrorism financiers, Gareth Vaughan, Interest, 4 Dec 2019
MBIE says Cabinet approval for beefed up company beneficial ownership regime to be sought soon, Gareth Vaughan, 1 Nov 2019 - (and LinkedIn post) - Ron Pol earlier slammed the plans as almost completely useless, with a steadfast aversion to critical thinking, evidence and the principles of policy effectiveness
Trusts excluded from government's beneficial ownership push Gareth Vaughan, Interest, 25 June 2018
Good health outcomes are what matter, not easy targets Ron Pol, Stuff, 28 June 2018
A family's plight with bowel cancer revealed something that goes to the heart of our health system, and public administration. I don't know what lies behind Health Minister David Clark's decision to scrap national health targets, or what he intends to replace them with, but the question remains: Is New Zealand's health system focused on medical processes, or better health outcomes for New Zealanders?
Republished (modified): Good health outcomes are what matter, not easy targets, Medium, 5 March 2020
A family's plight with bowel cancer revealed something that goes to the heart of our health system, and public administration. I don't know what lies behind Health Minister David Clark's decision to scrap national health targets, or what he intends to replace them with, but the question remains: Is New Zealand's health system focused on medical processes, or better health outcomes for New Zealanders?
Republished (modified): Good health outcomes are what matter, not easy targets, Medium, 5 March 2020
"Let's improve the capacity to disrupt serious crime, says leading publisher, releasing new studies free to public, LinkedIn, 28 June 2018
In a surprise move, Emerald Publishing, with a global stable of nearly 300 peer-reviewedd scientific journals reelased two articles as 'open access' for the next 3 months.
In a surprise move, Emerald Publishing, with a global stable of nearly 300 peer-reviewedd scientific journals reelased two articles as 'open access' for the next 3 months.
New study: AML=BS? Ronald Pol, LinkedIn, 24 May 2018
R F Pol, LinkedIn - new research reveals anti-money laundering rules "almost completely ineffective"
This article was first published on financial website Interest here
R F Pol, LinkedIn - new research reveals anti-money laundering rules "almost completely ineffective"
This article was first published on financial website Interest here
The same features that attract legitimate capital make NZ equally attractive to illicit capital Gareth Vaughan, Interest, 16 March 2018
Shell companies, the role of company and trust service providers & alternative banking platforms highlighted in 'refreshingly honest' NZ Police money laundering report. Ron Pol describes the report as offering a better line of sight to serious crime, without the blinkers of unfounded assumptions, or pressures to support a particular narrative getting in the way. This shouldn't be uncommon. But the uncomfortable truth is that it is. So, all credit to NZ Police. The 'real oil' might be in the restricted version, but the public version is at least a useful indicator of uncommon competence.
Criminals launder $1.35b a year in New Zealand Patrick O'Meara, Radio NZ, 19 March 2018
Estimated 1.35b laundered in New Zealand each year Radio NZ Checkpoint with John Campbell, 19 March 2018 - Patrick O'Meara interviews Andrew Hill, Ron Pol, Suzanne Snively
Money laundering isn't that hard for criminals: NZ's housing market makes it easy to launder money, says expert Newstalk ZB, 20 March 2018, Mike Hosking interviews Ron Pol. $1.35b laundered = $1.76b crime proceeds, plus tax evasion & transnational crime. Profound impact on criminals caught, but $14.4m seized last year of $1.8b even assuming just domestic, at 0.8% not even rounding error impact overall.
Police estimate $1.35b laundered in NZ, but ML controls have little impact on crime [audio] 20 March 2018, RadioLive, Wendyll Nissen interviews Ron Pol
Billions in illicit funds filtering through New Zealand Newstalk ZB 20 March 2018 Kate Hawkesby interviews Suzanne Snively [many of these statements might be contested, such as the suggestion it's from offshore, big legislative impact, 2-5% estimated globally, etc]
Shell companies, the role of company and trust service providers & alternative banking platforms highlighted in 'refreshingly honest' NZ Police money laundering report. Ron Pol describes the report as offering a better line of sight to serious crime, without the blinkers of unfounded assumptions, or pressures to support a particular narrative getting in the way. This shouldn't be uncommon. But the uncomfortable truth is that it is. So, all credit to NZ Police. The 'real oil' might be in the restricted version, but the public version is at least a useful indicator of uncommon competence.
Criminals launder $1.35b a year in New Zealand Patrick O'Meara, Radio NZ, 19 March 2018
Estimated 1.35b laundered in New Zealand each year Radio NZ Checkpoint with John Campbell, 19 March 2018 - Patrick O'Meara interviews Andrew Hill, Ron Pol, Suzanne Snively
Money laundering isn't that hard for criminals: NZ's housing market makes it easy to launder money, says expert Newstalk ZB, 20 March 2018, Mike Hosking interviews Ron Pol. $1.35b laundered = $1.76b crime proceeds, plus tax evasion & transnational crime. Profound impact on criminals caught, but $14.4m seized last year of $1.8b even assuming just domestic, at 0.8% not even rounding error impact overall.
Police estimate $1.35b laundered in NZ, but ML controls have little impact on crime [audio] 20 March 2018, RadioLive, Wendyll Nissen interviews Ron Pol
Billions in illicit funds filtering through New Zealand Newstalk ZB 20 March 2018 Kate Hawkesby interviews Suzanne Snively [many of these statements might be contested, such as the suggestion it's from offshore, big legislative impact, 2-5% estimated globally, etc]
Paul Manafort was stupid or unlucky. Most money launderers get away with it John Cassara, Politico, 27 Feb 2018
"The Bank Secrecy Act, the U.S. government’s primary model for stopping money laundering, was enacted almost 50 years ago. Our financial intelligence countermeasures were primarily designed to stop the money laundering of cowboy cocaine dealers operating in Miami. The model is outdated, inefficient and expensive. Financial institutions and money service businesses in the United States spend approximately $8 billion a year to comply with money-laundering rules—more than twice the amount of criminal proceeds forfeited. As Ron Pol, a respected money-laundering expert, recently put it, “Anti-money laundering legislation is the least effective of any anti-crime measure, anywhere.”
Cited in The politics of AML: Socio-political considerations for money laundering regulation Trulioo [industry] 13 March 2018
For all the efforts,.. unfortunately money laundering continues to be ongoing and prevalent. As a recent article in Politico states, “most money launderers get away with it.” That article...comes to the conclusion that over 99 percent of money laundering is not caught. Or as Ron Pol, a respected money-laundering expert, states, “Anti-money laundering legislation is the least effective of any anti-crime measure, anywhere.”
"The Bank Secrecy Act, the U.S. government’s primary model for stopping money laundering, was enacted almost 50 years ago. Our financial intelligence countermeasures were primarily designed to stop the money laundering of cowboy cocaine dealers operating in Miami. The model is outdated, inefficient and expensive. Financial institutions and money service businesses in the United States spend approximately $8 billion a year to comply with money-laundering rules—more than twice the amount of criminal proceeds forfeited. As Ron Pol, a respected money-laundering expert, recently put it, “Anti-money laundering legislation is the least effective of any anti-crime measure, anywhere.”
Cited in The politics of AML: Socio-political considerations for money laundering regulation Trulioo [industry] 13 March 2018
For all the efforts,.. unfortunately money laundering continues to be ongoing and prevalent. As a recent article in Politico states, “most money launderers get away with it.” That article...comes to the conclusion that over 99 percent of money laundering is not caught. Or as Ron Pol, a respected money-laundering expert, states, “Anti-money laundering legislation is the least effective of any anti-crime measure, anywhere.”
Modernizing AML laws to combat money laundering and terrorist financing (PDF) Congressional testimony (Senate Judiciary Committee) by John Cassara, 28 Nov 2017
Opening paragraph:
Chairman Grassley, Ranking Member Feinstein, and members of the Senate Committee on the Judiciary, thank you for the opportunity to testify today. It is an honor for me to be here.
“Anti-money laundering legislation is the least effective of any anti-crime measure, anywhere."
Why does Ron Pol, a respected anti-money laundering researcher, make such a stunning statement? Because the bottom-line metrics suggest that money-laundering enforcement fails 99.9 percent of the time.
Opening paragraph:
Chairman Grassley, Ranking Member Feinstein, and members of the Senate Committee on the Judiciary, thank you for the opportunity to testify today. It is an honor for me to be here.
“Anti-money laundering legislation is the least effective of any anti-crime measure, anywhere."
Why does Ron Pol, a respected anti-money laundering researcher, make such a stunning statement? Because the bottom-line metrics suggest that money-laundering enforcement fails 99.9 percent of the time.
Anti-money laundering: What really matters most? Ron Pol, presentation notes for NZLS CLE update, February 2018 (& participants' feedback)
This session will guide you to a better understanding of what to be alert to when ensuring that your transactions are clean, and your practice doesn’t slip between the gaps of tick-box compliance and real‑life practice. The legislation, and programs based on the legislation, have gaps that don’t always reflect practice. But there is empirical evidence how lawyers are used to facilitate money laundering, often unwittingly. Given the recent AEOI-CRS implementation, and with trusts, companies and real estate transactions linked with crime proceeds locally and overseas, there are key issues to consider, including how criminals compartmentalise knowledge to use lawyers, and what it really means to miss the most important red flags.
Also: Ports and Australian gangs key targets of new police organised crime squad in Tauranga, Jared Savage, NZ Herald, 13 March 2018 Iain Chapman also had a warning for professionals who enabled criminal groups to hide their wealth. "Organised crime is a business. The number one way to shut down a business is to remove the ability to make transactions. And one of the best ways to do that is to go through the enablers: the accountants, the real estate agents, the lawyers sitting behind those transactions, the purchasing of assets, the hiding of money. They are the ones making organised crime successful."
This session will guide you to a better understanding of what to be alert to when ensuring that your transactions are clean, and your practice doesn’t slip between the gaps of tick-box compliance and real‑life practice. The legislation, and programs based on the legislation, have gaps that don’t always reflect practice. But there is empirical evidence how lawyers are used to facilitate money laundering, often unwittingly. Given the recent AEOI-CRS implementation, and with trusts, companies and real estate transactions linked with crime proceeds locally and overseas, there are key issues to consider, including how criminals compartmentalise knowledge to use lawyers, and what it really means to miss the most important red flags.
Also: Ports and Australian gangs key targets of new police organised crime squad in Tauranga, Jared Savage, NZ Herald, 13 March 2018 Iain Chapman also had a warning for professionals who enabled criminal groups to hide their wealth. "Organised crime is a business. The number one way to shut down a business is to remove the ability to make transactions. And one of the best ways to do that is to go through the enablers: the accountants, the real estate agents, the lawyers sitting behind those transactions, the purchasing of assets, the hiding of money. They are the ones making organised crime successful."
Anti-money laundering effectiveness ratings: Ranking countries and outcomes Ron Pol, ACAMS Today, Dec 2017-Feb 2018 (outline, subscription required for full article)
There is no official consolidated effectiveness rating for each country, nor any ranking of countries assessed for AML/CFT effectiveness. This article offers simple new ways to consolidate AML/CFT effectiveness ratings for a single measure, and ranks all countries assessed to date. It also ranks the 11 FATF 'immediate outcome' measures of AML/CFT effectiveness.
There is no official consolidated effectiveness rating for each country, nor any ranking of countries assessed for AML/CFT effectiveness. This article offers simple new ways to consolidate AML/CFT effectiveness ratings for a single measure, and ranks all countries assessed to date. It also ranks the 11 FATF 'immediate outcome' measures of AML/CFT effectiveness.
So much cash in a cashless society Lynn Grieveson Newsroom.pro, 26 November 2017
New Zealanders increasingly think we're moving to a cashless society. So why has the amount of cash held in New Zealand more than trebled in the last 20 years? Lynn Grieveson looks at whether criminals, tradies or abusers of migrants are responsible.
"It does seem counter-intuitive for cash use to be increasing by such amounts, yet more evidence would be needed before necessarily attributing it to the criminal economy," says political scientist and money laundering expert Ron Pol. Pol says companies, real estate and other assets and investments are criminal's real stock in trade for furthering criminal activities, not cash.
Cited in Cash use is growing, but why? Cash Essentials, 4 Dec 2017
Criminality and fraud are often cited as potential suspects affecting cash volumes, but even that cannot explain this. Indeed, according to political scientist and money laundering expert Ron Pol, “Criminals often don’t want to hold cash either. Even with crimes that generate large amounts of cash, such as retail drug sales, apart from paying some wages and expenses, cash isn’t’ very useful until it’s been laundered and converted into assets like real estate and other investments and bank accounts”.
New Zealanders increasingly think we're moving to a cashless society. So why has the amount of cash held in New Zealand more than trebled in the last 20 years? Lynn Grieveson looks at whether criminals, tradies or abusers of migrants are responsible.
"It does seem counter-intuitive for cash use to be increasing by such amounts, yet more evidence would be needed before necessarily attributing it to the criminal economy," says political scientist and money laundering expert Ron Pol. Pol says companies, real estate and other assets and investments are criminal's real stock in trade for furthering criminal activities, not cash.
Cited in Cash use is growing, but why? Cash Essentials, 4 Dec 2017
Criminality and fraud are often cited as potential suspects affecting cash volumes, but even that cannot explain this. Indeed, according to political scientist and money laundering expert Ron Pol, “Criminals often don’t want to hold cash either. Even with crimes that generate large amounts of cash, such as retail drug sales, apart from paying some wages and expenses, cash isn’t’ very useful until it’s been laundered and converted into assets like real estate and other investments and bank accounts”.
The ongoing headache caused by shell companies and the misuse of NZ companies - Part 2 Gareth Vaughan, Interest, 24 November 2017
Extended article, interviews Prof Jason Sharman, Ron Pol and Companies Office spokesman. Pol notes one of the most egregious gaps still remaining in crime prevention policy effectiveness in this area relates to the requirement to prove predicate crime, which can offer transnational organised crime networks a huge competitive advantage over domestic criminal groups. (Also noted previously, in Dirty cash: The fight against money laundering - should NZ do more, Hamish Fletcher, NZ Herald, 10 Sept 2015). The NZ-resident requirement for companies can also be misused. But New Zealand strikes a better balance in some areas than many other countries, making it harder for overseas criminals to establish companies, yet preserving ease of registration for legitimate use.
Part 1 - Six years after extensive problems identified with shell companies, the problem persists (22 November)
Fullerton Markets' trustee lays complaint with NZ Police Gareth Vaughan, Interest, 27 November 2017
Kiwi Global Trust director (lawyer John Langford) quits Gareth Vaughan, Interest, 7 December 2017
NZ Rugby entangled in Ponzi fraudster's multi-million dollar crime spree (part 1), Denise McNabb, Interest, 6 March 2018
NZ companies embroiled in French fraudster's web (part 2), Denise McNabb, Interest, 8 March 2018
Extended article, interviews Prof Jason Sharman, Ron Pol and Companies Office spokesman. Pol notes one of the most egregious gaps still remaining in crime prevention policy effectiveness in this area relates to the requirement to prove predicate crime, which can offer transnational organised crime networks a huge competitive advantage over domestic criminal groups. (Also noted previously, in Dirty cash: The fight against money laundering - should NZ do more, Hamish Fletcher, NZ Herald, 10 Sept 2015). The NZ-resident requirement for companies can also be misused. But New Zealand strikes a better balance in some areas than many other countries, making it harder for overseas criminals to establish companies, yet preserving ease of registration for legitimate use.
Part 1 - Six years after extensive problems identified with shell companies, the problem persists (22 November)
Fullerton Markets' trustee lays complaint with NZ Police Gareth Vaughan, Interest, 27 November 2017
Kiwi Global Trust director (lawyer John Langford) quits Gareth Vaughan, Interest, 7 December 2017
NZ Rugby entangled in Ponzi fraudster's multi-million dollar crime spree (part 1), Denise McNabb, Interest, 6 March 2018
NZ companies embroiled in French fraudster's web (part 2), Denise McNabb, Interest, 8 March 2018
Five money laundering myths for lawyers to avoid Ron Pol, LinkedIn, September 2017 (With links to full LawTalk article)
Falling into any of these myths can make anti-money laundering harder, and more expensive, than it needs to be.
Note: PDF & HTML versions to the full LawTalk article available at link, also link to further commentary at Interest.co.nz
Falling into any of these myths can make anti-money laundering harder, and more expensive, than it needs to be.
Note: PDF & HTML versions to the full LawTalk article available at link, also link to further commentary at Interest.co.nz
Ping An Finance fined $5.3 million for 'calculated and contemptuous' disregard for AML laws Interest, 29 Sept 2018
First prosecution under 2013 laws
AML Solutions comments on objective vs subjective nature of reporting suspicions, 31 October 2017
Finance company director Xiaolan Xiao loses challenge to $5.3m fine, NZ Herald, 26 March 2018
First prosecution under 2013 laws
AML Solutions comments on objective vs subjective nature of reporting suspicions, 31 October 2017
Finance company director Xiaolan Xiao loses challenge to $5.3m fine, NZ Herald, 26 March 2018
Could NZ get a public register of company beneficial ownership information? Gareth Vaughan, Interest, 4 August 2017
MBIE striving to diagnose whether a problem exists due to a lack of transparency on company and trust beneficial ownership
Also
MBIE says Cabinet approval for beefed up company beneficial ownership regime to be sought soon, Gareth Vaughan, 1 Nov 2019 - Ron Pol earlier slammed the plans as almost completely useless, with a steadfast aversion to critical thinking, evidence and the principles of policy effectiveness
Scale of crime spree by NZ shell companies peddled by Taylors detailed, Gareth Vaughan, Interest, 6 December 2018 - from North Korean gun running to El Chapo's Sinaloa drugs cartel
Fullerton Markets cops AML warning, withdraws licence application Gareth Vaughan, Interest, 24 November 2017 - Ron Pol commentary on what FMA statement doesn't say, and where sits on spectrum
How an out of favour Russian oligarch used NZ trusts to squirrel away assets Gareth Vaughan, Interest, 21 October 2017
NZ shell companies caught in Slovakian money laundering probe Denise McNab, Interest, 9 October 2017
Ian Taylor, S-Profit Ltd, South Sudan & arms deals Gareth Vaughan, 26 September 2017
The NZ links to the alleged $2.9b Azerbaijani laundromat Gareth Vaughan, Interest.co.nz, 7 September 2017
Also Interest.co.nz links to articles on NZ's soft touch companies regime, softer touch oversight of company agents and box-ticking approach to AML regulation
MBIE striving to diagnose whether a problem exists due to a lack of transparency on company and trust beneficial ownership
Also
MBIE says Cabinet approval for beefed up company beneficial ownership regime to be sought soon, Gareth Vaughan, 1 Nov 2019 - Ron Pol earlier slammed the plans as almost completely useless, with a steadfast aversion to critical thinking, evidence and the principles of policy effectiveness
Scale of crime spree by NZ shell companies peddled by Taylors detailed, Gareth Vaughan, Interest, 6 December 2018 - from North Korean gun running to El Chapo's Sinaloa drugs cartel
Fullerton Markets cops AML warning, withdraws licence application Gareth Vaughan, Interest, 24 November 2017 - Ron Pol commentary on what FMA statement doesn't say, and where sits on spectrum
How an out of favour Russian oligarch used NZ trusts to squirrel away assets Gareth Vaughan, Interest, 21 October 2017
NZ shell companies caught in Slovakian money laundering probe Denise McNab, Interest, 9 October 2017
Ian Taylor, S-Profit Ltd, South Sudan & arms deals Gareth Vaughan, 26 September 2017
The NZ links to the alleged $2.9b Azerbaijani laundromat Gareth Vaughan, Interest.co.nz, 7 September 2017
Also Interest.co.nz links to articles on NZ's soft touch companies regime, softer touch oversight of company agents and box-ticking approach to AML regulation
CBA accused of ML/TF breaches (PDF). AUSTRAC's complaint appears not to be a 'failure to tick boxes' allegation. Systemic, ongoing misuse of ATMs enabling deposits is alleged, 3 August 2017
Also CBA defence outline 13 December 2017 (PDF)
Question time: If all Australian banks launder money, why is only one facing enforcement action? Nathan Lynch, LinkedIn, 15 September 2017 (& image: Innovative outcomes require different thinking)
It's not just CBA: All the banks are exposed to millions in money laundering Nick McKenzie, SMH, 15 September 2017
CBA's alleged transaction monitoring problems spark American probes Nathan Lynch, Ajay Shamdasini, Sydney Morning Herald, 4 September 2017 - Ron Pol on LinkedIn: If there are internal reports "several years ago" raising these issues, there's no point even trying a "working documents" defence. The "coding errors" defence was absurd enough. US regulators would indeed be "unimpressed". But if the bank runs these sorts of thing up the flagpole, it raises deeper questions about culture and oversight, let alone crisis, regulatory and litigation management.
The Commonwealth Bank of Australia - sickness or symptom? Nigel Morris-Cotterill, 30 August 2017
CBA's smart laundromat: The inside story of Australia's biggest money laundering scandal Nathan Lynch at Michael West, 29 August 2017
APRA opens inquiry into CBA (investigating governance, culture and accountability) Gareth Vaughan, Interest, 28 August 2017
RBNZ quizzing banks on ATMs after big AML case emerges in Australia Gareth Vaughan, Interest, 9 August 2017 - in April, RBNZ warned about smart ATMs as 'easy method to place the proceeds of crime'
Now questions loom from NZ regulators (PDF) Patrick Durkin, AFR, 9 August 2017 - Ron Pol on criminals adjusting quickly. New AUSTRAC CEO vital to case outcome (PDF) - AUSTRAC culture
Commonwealth Bank blames 'coding error' for scandal NZ Herald (AAP), 7 August 2017 - 'compliance' culture?
'We made mistakes', says CBA boss Ian Narev James Evers & Tony Boyd, AFR, 6 August 2017 and CBA media release, 6 August 2017
AFP raided CBA for non-disclosure in Austrac court case Neil Chenoweth, Financial Review, 6 August 2017 (paywall)
CBA faces major AML lawsuit David Chaston, Interest, 3 August 2017 - with commentary
Austrac alleges CBA in 'serious' breach of money laundering act, Clancy Yeates, Sydney Morning Herald, 3 August 2017
Also CBA defence outline 13 December 2017 (PDF)
Question time: If all Australian banks launder money, why is only one facing enforcement action? Nathan Lynch, LinkedIn, 15 September 2017 (& image: Innovative outcomes require different thinking)
It's not just CBA: All the banks are exposed to millions in money laundering Nick McKenzie, SMH, 15 September 2017
CBA's alleged transaction monitoring problems spark American probes Nathan Lynch, Ajay Shamdasini, Sydney Morning Herald, 4 September 2017 - Ron Pol on LinkedIn: If there are internal reports "several years ago" raising these issues, there's no point even trying a "working documents" defence. The "coding errors" defence was absurd enough. US regulators would indeed be "unimpressed". But if the bank runs these sorts of thing up the flagpole, it raises deeper questions about culture and oversight, let alone crisis, regulatory and litigation management.
The Commonwealth Bank of Australia - sickness or symptom? Nigel Morris-Cotterill, 30 August 2017
CBA's smart laundromat: The inside story of Australia's biggest money laundering scandal Nathan Lynch at Michael West, 29 August 2017
APRA opens inquiry into CBA (investigating governance, culture and accountability) Gareth Vaughan, Interest, 28 August 2017
RBNZ quizzing banks on ATMs after big AML case emerges in Australia Gareth Vaughan, Interest, 9 August 2017 - in April, RBNZ warned about smart ATMs as 'easy method to place the proceeds of crime'
Now questions loom from NZ regulators (PDF) Patrick Durkin, AFR, 9 August 2017 - Ron Pol on criminals adjusting quickly. New AUSTRAC CEO vital to case outcome (PDF) - AUSTRAC culture
Commonwealth Bank blames 'coding error' for scandal NZ Herald (AAP), 7 August 2017 - 'compliance' culture?
'We made mistakes', says CBA boss Ian Narev James Evers & Tony Boyd, AFR, 6 August 2017 and CBA media release, 6 August 2017
AFP raided CBA for non-disclosure in Austrac court case Neil Chenoweth, Financial Review, 6 August 2017 (paywall)
CBA faces major AML lawsuit David Chaston, Interest, 3 August 2017 - with commentary
Austrac alleges CBA in 'serious' breach of money laundering act, Clancy Yeates, Sydney Morning Herald, 3 August 2017
Anti-money laundering laws pass unanimously Amy Adams, Minister of Justice (media release), 3 August 2017
Parliament has passed reforms extending AML/CFT regime to lawyers, accountants, real estate agents and others
Also
Phase 2 AML gets royal assent Zowie Pateman (Chartered Accountants Australia New Zealand), LinkedIn, 24 August 2017
Justice Minister Amy Adams announces AML/CFT extension reform passed in Parliament, David Chaston, Interest, 3 August 2017 - with commentary
Parliament has passed reforms extending AML/CFT regime to lawyers, accountants, real estate agents and others
Also
Phase 2 AML gets royal assent Zowie Pateman (Chartered Accountants Australia New Zealand), LinkedIn, 24 August 2017
Justice Minister Amy Adams announces AML/CFT extension reform passed in Parliament, David Chaston, Interest, 3 August 2017 - with commentary
How money can be laundered Nick Butcher, LawTalk, August 2017 (PDF) - Ron Pol asked about some simple ways to launder money
Also
What Internal Affairs is planning Nick Butcher, LawTalk, August 2017 - Kate Reid describes DIA as a proactive supervisor
Hang on: help is on its way for lawyers ready to grapple phase two Nick Butcher, LawTalk, August 2017 - Some advisers recommend and enable 'bare compliance'
Also
What Internal Affairs is planning Nick Butcher, LawTalk, August 2017 - Kate Reid describes DIA as a proactive supervisor
Hang on: help is on its way for lawyers ready to grapple phase two Nick Butcher, LawTalk, August 2017 - Some advisers recommend and enable 'bare compliance'
Accountants happy not to know their client: Opaque Marshall Islands company wants its money back from NZ FSP Gareth Vaughan, Interest, 28 July 2017
After leaving a trail of destruction in its wake NZ's Asia Finance Corporation is being liquidated. But who is behind the liquidation?
Also
Pacific Aerospace guilty of unlawful exports to North Korea Thomas Manch, Stuff, 11 October 2017
After leaving a trail of destruction in its wake NZ's Asia Finance Corporation is being liquidated. But who is behind the liquidation?
Also
Pacific Aerospace guilty of unlawful exports to North Korea Thomas Manch, Stuff, 11 October 2017
EU pressure rising on implementation of stricter money laundering rules David Chaston, Interest, 24 July 2017
Interest reports that 17 of 28 EU countries may be in breach of their EU AML obligations to implement stricter money laundering rules. Comment by "two otherguys" asking about Ron Pol's thesis. Ron Pol replies, revealing exercise in gauging evidence-based outcome-oriented appetite of New Zealand's policy, regulatory and enforcement agencies. There's probably enough material to write an article something like "How not to catch criminal enterprises using lawyers, accountants an real estate agents to launder criminal proceeds: The New Zealand example".
Interest reports that 17 of 28 EU countries may be in breach of their EU AML obligations to implement stricter money laundering rules. Comment by "two otherguys" asking about Ron Pol's thesis. Ron Pol replies, revealing exercise in gauging evidence-based outcome-oriented appetite of New Zealand's policy, regulatory and enforcement agencies. There's probably enough material to write an article something like "How not to catch criminal enterprises using lawyers, accountants an real estate agents to launder criminal proceeds: The New Zealand example".
Businesses want more time to enact anti-money laundering Anusha Bradley, Radio NZ, 6 July 2017 - Amidst concerns they aren't up to the task and even whether the new laws will be effective. Ron Pol: The new laws will allow NZ to meet its international obligations. But with AML laws globally ubiquitous, and just 0.2% of criminal funds interdicted, a little bit extra will hardly make a difference. It's little more than a rounding error in criminal accounts. We should focus on effectiveness rather than tick-box compliance if we want to achieve goals to significantly disrupt serious criminal activity.
Number of foreign trusts dramatically drops since new transparency rules introduced Jessica Mutch, TV1 News, 9 June 2017
Includes commentary from Ron Pol, as fewer than 1% of NZ foreign trusts re-registered after rules change requiring basic beneficial ownership information
BEPS proposal means hasta la vista to foreign trusts Terry Baucher, Interest, 12 August 2017
Tax crackdown evolves: Kills foreign trusts, slugs MNCs for $200m Matt Nippert, NZ Herald, 4 August 2017
Foreign trusts fled from the sunlight, Radio NZ, 6 July 2017 - assertion by Finance Minister that 'onerous' disclosure requirements dissuaded some, and admission new rules help secure other countries' tax bases
Foreign trust numbers plummet after introduction of new rules, Radio NZ, 6 July 2017 - Prof Littlewood says those that left include illegitimate trusts
Number of foreign NZ trusts plunge after new disclosure rules, NBR, 5 July 2017 - with comments by Ron Pol
Foreign trusts whittled down after new rules NZ Herald, 5 July 2017
Germany's Federal Crime Office says it has Panama Papers Reuters, 4 July 2017
Number of foreign trusts decline ahead of new regulations Tom Pullar-Strecker, stuff, 14 January 2017 - The foreign trust industry has stalled ahead of new regulations being introduced as a result of the Panama Papers revelations. The rate of growth has stopped and some trusts have been deregistered "for various reasons" says Inland Revenue. Financial commentator Ron Pol said it wouldn't necessarily make sense for foreigners who had used trusts for illegal purposes to deregister them. They could instead leave them as empty shells, transfer their assets away and "airbrush the money trails".
Includes commentary from Ron Pol, as fewer than 1% of NZ foreign trusts re-registered after rules change requiring basic beneficial ownership information
BEPS proposal means hasta la vista to foreign trusts Terry Baucher, Interest, 12 August 2017
Tax crackdown evolves: Kills foreign trusts, slugs MNCs for $200m Matt Nippert, NZ Herald, 4 August 2017
Foreign trusts fled from the sunlight, Radio NZ, 6 July 2017 - assertion by Finance Minister that 'onerous' disclosure requirements dissuaded some, and admission new rules help secure other countries' tax bases
Foreign trust numbers plummet after introduction of new rules, Radio NZ, 6 July 2017 - Prof Littlewood says those that left include illegitimate trusts
Number of foreign NZ trusts plunge after new disclosure rules, NBR, 5 July 2017 - with comments by Ron Pol
Foreign trusts whittled down after new rules NZ Herald, 5 July 2017
Germany's Federal Crime Office says it has Panama Papers Reuters, 4 July 2017
Number of foreign trusts decline ahead of new regulations Tom Pullar-Strecker, stuff, 14 January 2017 - The foreign trust industry has stalled ahead of new regulations being introduced as a result of the Panama Papers revelations. The rate of growth has stopped and some trusts have been deregistered "for various reasons" says Inland Revenue. Financial commentator Ron Pol said it wouldn't necessarily make sense for foreigners who had used trusts for illegal purposes to deregister them. They could instead leave them as empty shells, transfer their assets away and "airbrush the money trails".
Trump's 100 days: How his presidency is succeeding James Hohmann, Washington Post, 28 March 2017
Deconstruction of the administrative state and regulations. Will it extend to affect AML/CFT controls?
Deconstruction of the administrative state and regulations. Will it extend to affect AML/CFT controls?
Fewer law firms, accounting firms & real estate agents caught in AML net Gareth Vaughan, Interest, 15 March 2017
Justice Minister says compliance costs of extending anti-money laundering net have fallen by as much as half to between $800 mln & $1.1 bln; What will impact on the detection, prosecution & prevention of serious crime be? Ron Pol "Adjusting the number of businesses covered and massaging the cost-benefit numbers won’t materially affect the policy effectiveness equation. The new bill will help position New Zealand to meet its international obligations. Box ticked. Police will also no doubt welcome the Bill, as another small addition to their intelligence capabilities. But the international and New Zealand evidence suggests that it is unlikely that the incremental approach of adding more reporting entities will have a significant or demonstrable impact on the detection, prosecution and prevention of serious crime."
Justice Minister says compliance costs of extending anti-money laundering net have fallen by as much as half to between $800 mln & $1.1 bln; What will impact on the detection, prosecution & prevention of serious crime be? Ron Pol "Adjusting the number of businesses covered and massaging the cost-benefit numbers won’t materially affect the policy effectiveness equation. The new bill will help position New Zealand to meet its international obligations. Box ticked. Police will also no doubt welcome the Bill, as another small addition to their intelligence capabilities. But the international and New Zealand evidence suggests that it is unlikely that the incremental approach of adding more reporting entities will have a significant or demonstrable impact on the detection, prosecution and prevention of serious crime."
New anti-money laundering rules will have 'significant impact' on would-be launderers, says PM Jason Walls, NBR, 13 March 2017
Mr English's comments come after the AML/CFT Bill was introduced to Parliament this week. Ron Pol comment: The new bill will help position New Zealand to meet its international obligations. Box ticked. Police will also no doubt welcome it, as another small addition to their intelligence capabilities. But the international and New Zealand evidence suggests that it is unlikely that the incremental approach of adding more reporting entities will have a significant or demonstrable impact on the detection, prosecution and prevention of serious crime.
Gold dealer's fight for $4m home taken as criminal bounty David Fisher, NZ Herald 12 March 2017 - Police Minister Paula Bennett sets $400m asset recovery target over next four years
What the wastewater tells us about drugs Russell Brown, Hard News, 14 March 2017 - Auckland drug use estimated at $146 million annually
Mr English's comments come after the AML/CFT Bill was introduced to Parliament this week. Ron Pol comment: The new bill will help position New Zealand to meet its international obligations. Box ticked. Police will also no doubt welcome it, as another small addition to their intelligence capabilities. But the international and New Zealand evidence suggests that it is unlikely that the incremental approach of adding more reporting entities will have a significant or demonstrable impact on the detection, prosecution and prevention of serious crime.
Gold dealer's fight for $4m home taken as criminal bounty David Fisher, NZ Herald 12 March 2017 - Police Minister Paula Bennett sets $400m asset recovery target over next four years
What the wastewater tells us about drugs Russell Brown, Hard News, 14 March 2017 - Auckland drug use estimated at $146 million annually
Chance for NZ to lead world & 'unlock billions of dollars worth of criminal assets' Gareth Vaughan, Interest, 23 February 2017
The government appears to be missing an opportunity to move from a focus from an outputs-oriented, box-ticking approach to an outcomes-oriented focus as it expands NZ's AML laws, says expert.
Information underload: We're all mushrooms now Graham Adams, Noted, 9 May 2017 - Wanting to know what dubious transactions are being made behind New Zealand trusts is 'salacious' says government
New Zealand: The little tax haven that could? Graham Adams, Noted, 13 Feb 2017 - Notes Sarawak Report post detailing NZ willingness to function as a tax haven and provide a smokescreen to hide illicit money
Did a little-noticed tax exemption law turn Israel into a criminals' paradise? Simona Weinglass, Times of Israel, 15 Feb 2017
Apple pays zero tax in New Zealand Matt Nippert, NZ Herald, 18 Mar 2017 & Tax gap: The story so far Matt Nippert, NZ Herald, 18 Mar 2017
NZ's Chinese banks, AML responsibilities and the $50k limit Gareth Vaughan, Interest, 18 Mar 2017
British banks handled vast sums of laundered Russian money, The Guardian, 20 March 2017 - Anonymously owned companies played major role, 96 countries involved
The Russian laundromat exposed OCCRP, 20 March 2017 - Journalists show how the complex scheme worked, who ended up with the $20.8 billion and how banks failed for years to shut it down (infographic)
The government appears to be missing an opportunity to move from a focus from an outputs-oriented, box-ticking approach to an outcomes-oriented focus as it expands NZ's AML laws, says expert.
Information underload: We're all mushrooms now Graham Adams, Noted, 9 May 2017 - Wanting to know what dubious transactions are being made behind New Zealand trusts is 'salacious' says government
New Zealand: The little tax haven that could? Graham Adams, Noted, 13 Feb 2017 - Notes Sarawak Report post detailing NZ willingness to function as a tax haven and provide a smokescreen to hide illicit money
Did a little-noticed tax exemption law turn Israel into a criminals' paradise? Simona Weinglass, Times of Israel, 15 Feb 2017
Apple pays zero tax in New Zealand Matt Nippert, NZ Herald, 18 Mar 2017 & Tax gap: The story so far Matt Nippert, NZ Herald, 18 Mar 2017
NZ's Chinese banks, AML responsibilities and the $50k limit Gareth Vaughan, Interest, 18 Mar 2017
British banks handled vast sums of laundered Russian money, The Guardian, 20 March 2017 - Anonymously owned companies played major role, 96 countries involved
The Russian laundromat exposed OCCRP, 20 March 2017 - Journalists show how the complex scheme worked, who ended up with the $20.8 billion and how banks failed for years to shut it down (infographic)
NZ Law Society says lawyers unprepared for AML, but it's ready to regulate them Gareth Vaughan, Interest, 13 February 2017
Lawyers continue to balk at the Government's plans to drag them into compliance with anti-money laundering laws; Warning of potential for increased costs for client
Lawyers continue to balk at the Government's plans to drag them into compliance with anti-money laundering laws; Warning of potential for increased costs for client
Accountants want FMA to supervise them for AML/CFT compliance
Industry body wants 'pragmatic and proportional' AML compliance, delayed implementation and tangible benefits for its levy.
Industry body wants 'pragmatic and proportional' AML compliance, delayed implementation and tangible benefits for its levy.
Experts give cautious 'thumbs up' to New Zealand's new AML/CFT laws Nathan Lynch, Regulatory Intelligence (Thomson Reuters), 16 Dec 2016 [Full article - pdf]
Regulatory specialists have given a broad stamp of approval to New Zealand's proposals to extend the anti-money laundering regime to include lawyers, accountants, real estate agents and others, notwithstanding concerns remained about the timing, effectiveness of the regime and the supervisory structure.
Regulatory specialists have given a broad stamp of approval to New Zealand's proposals to extend the anti-money laundering regime to include lawyers, accountants, real estate agents and others, notwithstanding concerns remained about the timing, effectiveness of the regime and the supervisory structure.
Real estate agents get 18 months to comply with anti-money laundering bill [and lawyers 6 months], when it's passed Gareth Vaughan, Interest, 13 Dec 2016
Govt to stick with 3 anti-money laundering supervisors as it moves to drag real estate agents, lawyers and accountants into the AML net; Timetable labeled 'very ambitious' - With comments from Ron Pol
NZ says government will be money-laundering watchdog for lawyers, estate agents Charlotte Greenfield, Reuters, 14 Dec 2016
New Zealand unveils plans for second phase of AML/CFT regime Nathan Lynch, Regulatory Intelligence (Thomson Reuters), 13 Dec 2016 [Full article - pdf]
Govt to stick with 3 anti-money laundering supervisors as it moves to drag real estate agents, lawyers and accountants into the AML net; Timetable labeled 'very ambitious' - With comments from Ron Pol
NZ says government will be money-laundering watchdog for lawyers, estate agents Charlotte Greenfield, Reuters, 14 Dec 2016
New Zealand unveils plans for second phase of AML/CFT regime Nathan Lynch, Regulatory Intelligence (Thomson Reuters), 13 Dec 2016 [Full article - pdf]
FMA grumpy about lax anti-money laundering compliance Gareth Vaughan, Interest, 9 December 2016
Financial Markets Authority to step up anti-money laundering monitoring in 2017 & offer training in partnership with the Police Financial Intelligence Unit
Financial Markets Authority to step up anti-money laundering monitoring in 2017 & offer training in partnership with the Police Financial Intelligence Unit
Money laundering (letters to editor) Bruce Wagg & Frank O'Neill, LawTalk, 4 November 2016
Lawyer asks how money can be laundered through lawyer trust accounts if cash over $9999 is reported and electronic payments are "in the hands of the bank so should be free [of risk], from their [AML] obligations." LawTalk editor replies.
Lawyer asks how money can be laundered through lawyer trust accounts if cash over $9999 is reported and electronic payments are "in the hands of the bank so should be free [of risk], from their [AML] obligations." LawTalk editor replies.
Why the Govt should lance the boil that is NZ's FSPR Gareth Vaughan, Interest, 3 November 2016
Gareth Vaughan argues the Government should stop tinkering with the Financial Service Providers Register and simply abolish it. A pyramid investment scheme primarily operating in China that Reuters suggests has at least 3,700 victims who've lost more than US$1 billion. This may sound well removed from New Zealand. But it isn't. Half a dozen registered NZ financial service providers were used by the people behind this scheme to help fleece investors.
Banishing online financial companies will come back to bite us Joshua Brown, Interest, 18 May 2017 (with Ron Pol comment advocating balanced solutions)
Gareth Vaughan argues the Government should stop tinkering with the Financial Service Providers Register and simply abolish it. A pyramid investment scheme primarily operating in China that Reuters suggests has at least 3,700 victims who've lost more than US$1 billion. This may sound well removed from New Zealand. But it isn't. Half a dozen registered NZ financial service providers were used by the people behind this scheme to help fleece investors.
Banishing online financial companies will come back to bite us Joshua Brown, Interest, 18 May 2017 (with Ron Pol comment advocating balanced solutions)
Govt warns of $1.6b of AML costs Bernard Hickey, Interest, 2 Nov 2016
Justifying delay of new bill, Justice Minister warns extending Anti-Money Laundering regime to real estate agents, accountants and lawyers could cost home owners NZ$1.6 bln over 10 yrs; Labour accuses Govt of going soft on policing dirty money from China
Justifying delay of new bill, Justice Minister warns extending Anti-Money Laundering regime to real estate agents, accountants and lawyers could cost home owners NZ$1.6 bln over 10 yrs; Labour accuses Govt of going soft on policing dirty money from China
Adams denies go-slow on AML reforms for estate agents Bernard Hickey Interest, 1 Nov 2016
Justice Minister denies that lobbying from real estate agents has delayed round 2 of anti-money-laundering reforms; says still on track for passing of legislation by mid-2017; but backs off earlier aim to introduce legislation in 2016; Robertson says Govt caving to special interests.Adams also would not comment on Robertson's claim the Government was looking at not forcing buyers to identify themselves. "All of those details will be subject to the announcements in due course," she said.
Justice Minister denies that lobbying from real estate agents has delayed round 2 of anti-money-laundering reforms; says still on track for passing of legislation by mid-2017; but backs off earlier aim to introduce legislation in 2016; Robertson says Govt caving to special interests.Adams also would not comment on Robertson's claim the Government was looking at not forcing buyers to identify themselves. "All of those details will be subject to the announcements in due course," she said.
Big law firm breaks ranks Gareth Vaughan, Interest, 1 Nov 2016
Chapman Tripp calls for a single anti-money laundering supervisor similar to AUSTRAC in Australia.
Chapman Tripp calls for a single anti-money laundering supervisor similar to AUSTRAC in Australia.
New Zealand's top spot as easiest place to do business has unpalatable side Charlotte Greenfield, Reuters UK, 26 October 2016
New Zealand has edged out Singapore to take top spot for ease of doing business in the World Bank's latest rankings, but money laundering experts warned the honour masked the darker side of the Pacific nation's vulnerability as a channel for illegal funds.
Cited in
NZ easiest place to do business, Taipei Times, 27 Oct 2016. The top ranking in the ‘Doing Business’ report has an unpalatable side, with experts warning that it makes the nation the perfect place to hide ‘dirty money’. “Anyone who wants to … hide dirty money, just needs a local director, a physical address and NZ$45, and in a few minutes they’ve got just what they need to do it with,” said Ron Pol.
This country has been named the World’s easiest place to do business , Fortune, 26 October 2016
"Anyone who wants to … hide dirty money, just needs a local director (anyone will do), a physical address and $45, and in a few minutes they’ve got just what they need to do it with,” said Ron Pol, Wellington-based head of anti-money laundering firm AML Assurance.
NZ 'No 1' in ease of doing business, but... Straits Times, 27 Oct 2016
Singapore loses mantle as the world’s easiest place to do business, HR in Asia, 28 Oct 2016
However, money-laundering experts warned that the honour masked the darker side of the Pacific nation’s vulnerability as a channel for illegal funds. “Anyone who wants to … hide dirty money, just needs a local director, a physical address and NZ$45 (S$45), and in a few minutes they’ve got just what they need to do it with,” said Mr Ron Pol, Wellington-based head of anti-money laundering firm AML Assurance.
New Zealand has edged out Singapore to take top spot for ease of doing business in the World Bank's latest rankings, but money laundering experts warned the honour masked the darker side of the Pacific nation's vulnerability as a channel for illegal funds.
Cited in
NZ easiest place to do business, Taipei Times, 27 Oct 2016. The top ranking in the ‘Doing Business’ report has an unpalatable side, with experts warning that it makes the nation the perfect place to hide ‘dirty money’. “Anyone who wants to … hide dirty money, just needs a local director, a physical address and NZ$45, and in a few minutes they’ve got just what they need to do it with,” said Ron Pol.
This country has been named the World’s easiest place to do business , Fortune, 26 October 2016
"Anyone who wants to … hide dirty money, just needs a local director (anyone will do), a physical address and $45, and in a few minutes they’ve got just what they need to do it with,” said Ron Pol, Wellington-based head of anti-money laundering firm AML Assurance.
NZ 'No 1' in ease of doing business, but... Straits Times, 27 Oct 2016
Singapore loses mantle as the world’s easiest place to do business, HR in Asia, 28 Oct 2016
However, money-laundering experts warned that the honour masked the darker side of the Pacific nation’s vulnerability as a channel for illegal funds. “Anyone who wants to … hide dirty money, just needs a local director, a physical address and NZ$45 (S$45), and in a few minutes they’ve got just what they need to do it with,” said Mr Ron Pol, Wellington-based head of anti-money laundering firm AML Assurance.
John Key keeps lid on hidden billions Neil Chenoweth (AFR), Stuff, 5 October 2016
Prime Minister John Key introduced legislation in August to amend disclosure rules for the country's 12,000 foreign trusts, a move triggered by media coverage of New Zealand's links to Panama law firm Mossack Fonseca. The disclosure bill, which is now under review by select committee, has the singular feature that it arguably does not increase disclosure.
Prime Minister John Key introduced legislation in August to amend disclosure rules for the country's 12,000 foreign trusts, a move triggered by media coverage of New Zealand's links to Panama law firm Mossack Fonseca. The disclosure bill, which is now under review by select committee, has the singular feature that it arguably does not increase disclosure.
We are the agency best suited to be the supervisor for the real estate agency Gareth Vaughan, Interest, 24 Sept 2016
Real Estate Agents Authority argues any person or business carrying out activity involving real estate agency work should be subject to anti-money laundering laws.
Real Estate Agents Authority argues any person or business carrying out activity involving real estate agency work should be subject to anti-money laundering laws.
Anti-money laundering regulators 'don't understand how law firms operate' Gareth Vaughan, Interest, 24 Sept 2016
Auckland District Law Society wants NZ Law Society to supervise lawyers for anti-money laundering compliance, but doesn't want lawyers to pay for it.
Auckland District Law Society wants NZ Law Society to supervise lawyers for anti-money laundering compliance, but doesn't want lawyers to pay for it.
Money remitter to transport cash from NZ using 'high speed vessels' Jenée Tibshraeny, Interest, 23 Sept 2016
Money remitter shut out by banks due to AML concerns claims it has no choice but to physically ship cash around the world.
NZ remittance company buying speedboats to move cash around the Pacific Charlotte Greenfield, Reuters
As Australian banks snub remitters, digital players emerge, Nathan Lynch, Reuters, 2 May 2016
Money remitter shut out by banks due to AML concerns claims it has no choice but to physically ship cash around the world.
NZ remittance company buying speedboats to move cash around the Pacific Charlotte Greenfield, Reuters
As Australian banks snub remitters, digital players emerge, Nathan Lynch, Reuters, 2 May 2016
Lawyers want to supervise themselves for anti-money laundering compliance Gareth Vaughan, Interest, 22 Sept 2016
Banks, accountants, lobby groups push for Australian-style single anti-money laundering regulator. Ron Pol comments on policy effectiveness and "the 98% gap". NZ Police hitting well above international benchmarks, but the message remains that crime pays, and serious crime pays seriously. A step-change is required for criminals to be forced to throw the dice whether crime pays, or not.
Also:
Lawyers coming under the AML/CFT regime Frank Neill, NZLS, LawTalk, 7 Oct 2016 (outlining the Law Society's submissions). Anti-money laundering, Herman Visagie TSB Bank, LawTalk 2016
Identity and money laundering but don't mention LINZ Grant Aislabie, LawTalk, 7 Oct 2016, (Much, probably too much, is written and discussed about the anti-money laundering regime which we as a profession have been dumped into but not a lot has been spoken about the blasé acceptance of a form of identity which is not always as good as it seems)
Calls to regulate lawyers under anti-money laundering and terrorism financing Act Sol Dolor, NZ Lawyer, 26 Sept 2016
Banks, accountants, lobby groups push for Australian-style single anti-money laundering regulator. Ron Pol comments on policy effectiveness and "the 98% gap". NZ Police hitting well above international benchmarks, but the message remains that crime pays, and serious crime pays seriously. A step-change is required for criminals to be forced to throw the dice whether crime pays, or not.
Also:
Lawyers coming under the AML/CFT regime Frank Neill, NZLS, LawTalk, 7 Oct 2016 (outlining the Law Society's submissions). Anti-money laundering, Herman Visagie TSB Bank, LawTalk 2016
Identity and money laundering but don't mention LINZ Grant Aislabie, LawTalk, 7 Oct 2016, (Much, probably too much, is written and discussed about the anti-money laundering regime which we as a profession have been dumped into but not a lot has been spoken about the blasé acceptance of a form of identity which is not always as good as it seems)
Calls to regulate lawyers under anti-money laundering and terrorism financing Act Sol Dolor, NZ Lawyer, 26 Sept 2016
New Zealand extends anti-money laundering rules to capture property agents Nathan Lynch & Charlotte Greenfield, Reuters (Sydney/Wellington), 16 Sept 2016
New Zealand will extend its AML laws to cover real estate agents and other professions amid fears the country has become a soft target for illegal fund flows that also help inflate the property market. Ron Pol says it is difficult to determine the source of overseas funds, meaning that banks, police and regulators struggle to distinguish between capital flight and money laundering. Creating a dedicated AML agency as in Australia would help avoid duplication of effort and fragmentation of knowledge between supervisors. Also in Jakarta Globe (Indonesia), Business Times (Singapore), Rakyat Post (Malaysia), and Panama Papers Buzz
New Zealand will extend its AML laws to cover real estate agents and other professions amid fears the country has become a soft target for illegal fund flows that also help inflate the property market. Ron Pol says it is difficult to determine the source of overseas funds, meaning that banks, police and regulators struggle to distinguish between capital flight and money laundering. Creating a dedicated AML agency as in Australia would help avoid duplication of effort and fragmentation of knowledge between supervisors. Also in Jakarta Globe (Indonesia), Business Times (Singapore), Rakyat Post (Malaysia), and Panama Papers Buzz
Australia to extend money laundering laws Nathan Lynch, DailyMail, 14 Sept 2014. The Australian government is reviving long-stalled plans to extend anti-money laundering and counter-terrorist financing laws to capture lawyers, accountants, real estate agents and jewellers, Justice Minister Michael Keenan said. The government is preparing to release proposals to the public for consultation."The first step in this process will be the release of industry consultation papers by the Attorney General's Department, which is expected to happen before the end of the year," Keenan said.
Key wary of foreign buyer taxes and AML move Bernard Hickey, Interest, 13 Sept 2016
Prime Minister warns against moves to restrict or tax foreign buyers, saying he did not want a catastrophic slump in the market. He also talked down the prospect of urgent action to roll out a second round of AML requirements to real estate agents, solicitors and accountants, saying it could significantly increase compliance costs for home buyers.
Also:
No relief in sight as Auckland housing bubble continues to deflate Greg Ninness, Interest, 19 August 2017 - Falling China outflows effect. Sell-offs from any forced repatriations would exacerbate effects.
China's PBoC announces an army of 400,000 to prevent 'money laundering', Better Dwelling, 8 July 2017
China's massive international real estate buying spree is officially over, Better Dwelling, 7 June 2017
New Zealand's tax system: Internal coherence is not enough Deborah Russell, Interest, 18 Sept 2016 For all its technical attributes that makes New Zealand's tax system a model widely admired, it is not serving the broader economy or society well
Canadians, Aussies and Kiwis trapped in 'commodity bust, housing boom' and the unwinding is going to be painful, Shmuel, Financial Post, 29 Sept 2016 Evidence of a large foreign presence is abundant,” the economists write. “For example, resale house prices fell by 19% mom in Vancouver in August, the first month of a new foreign real estate transaction tax.”
Metiria Turei questions PM on laundering money through the housing market, Parliamentary oral questions, 13 Sept 2016
NZ PM goes into bat for foreign housing speculators MacroBusiness, 13 Sept 2016
Prime Minister warns against moves to restrict or tax foreign buyers, saying he did not want a catastrophic slump in the market. He also talked down the prospect of urgent action to roll out a second round of AML requirements to real estate agents, solicitors and accountants, saying it could significantly increase compliance costs for home buyers.
Also:
No relief in sight as Auckland housing bubble continues to deflate Greg Ninness, Interest, 19 August 2017 - Falling China outflows effect. Sell-offs from any forced repatriations would exacerbate effects.
China's PBoC announces an army of 400,000 to prevent 'money laundering', Better Dwelling, 8 July 2017
China's massive international real estate buying spree is officially over, Better Dwelling, 7 June 2017
New Zealand's tax system: Internal coherence is not enough Deborah Russell, Interest, 18 Sept 2016 For all its technical attributes that makes New Zealand's tax system a model widely admired, it is not serving the broader economy or society well
Canadians, Aussies and Kiwis trapped in 'commodity bust, housing boom' and the unwinding is going to be painful, Shmuel, Financial Post, 29 Sept 2016 Evidence of a large foreign presence is abundant,” the economists write. “For example, resale house prices fell by 19% mom in Vancouver in August, the first month of a new foreign real estate transaction tax.”
Metiria Turei questions PM on laundering money through the housing market, Parliamentary oral questions, 13 Sept 2016
NZ PM goes into bat for foreign housing speculators MacroBusiness, 13 Sept 2016
New Zealand leaps ahead of Australia with next phase of AML reforms Nathan Lynch, 12 Sept 2016 (with permission, first published on Thomson Reuters' Regulatory Intelligence
A significant proportion of illicit money ends up in real estate. Ron Pol said if phase 2 was effective it might affect house prices but the scale of the problem has not been fully researched. New Zealand is focusing on rapid implementation while Australia, which has been promising reforms for a decade, has emphasized the need for adequate consultation and a considered regulatory response. Pol says the current proposals appear to cleave to an unimaginative, rules-based 'standard' model which has hardly been a success elsewhere, to which it then adds a series of carve-outs that limit its scope further. It's not enough to put the usual rules in place. The real question is whether they actually work and what will make them more effective in helping to detect, prosecute and prevent serious crime.
A significant proportion of illicit money ends up in real estate. Ron Pol said if phase 2 was effective it might affect house prices but the scale of the problem has not been fully researched. New Zealand is focusing on rapid implementation while Australia, which has been promising reforms for a decade, has emphasized the need for adequate consultation and a considered regulatory response. Pol says the current proposals appear to cleave to an unimaginative, rules-based 'standard' model which has hardly been a success elsewhere, to which it then adds a series of carve-outs that limit its scope further. It's not enough to put the usual rules in place. The real question is whether they actually work and what will make them more effective in helping to detect, prosecute and prevent serious crime.
Police and officials warn of property laundering Matt Nippert, NZ Herald, 10 Sept 2016 Cartoon: Who comes here to launder clothes? NZ Herald
Police research concludes a loophole is seeing lawyers, accountants and real estate agents being increasingly used to launder $1.6b of dirty money annually, including into New Zealand's property markets. Ron Pol says the exemption was a mistake due to the obvious 'displacement effect' where criminals turn to easier places to launder money, but rushing through reforms too quickly isn't the answer. It's important to get it right. Infographic: How one international crime syndicate washed its New Zealand drug money
Police research concludes a loophole is seeing lawyers, accountants and real estate agents being increasingly used to launder $1.6b of dirty money annually, including into New Zealand's property markets. Ron Pol says the exemption was a mistake due to the obvious 'displacement effect' where criminals turn to easier places to launder money, but rushing through reforms too quickly isn't the answer. It's important to get it right. Infographic: How one international crime syndicate washed its New Zealand drug money
Strewth mate! Why New Zealand should embark down the Australian AML regulatory path rather than the British one, Gareth Vaughan, Interest 24 August 2016
If something's worth doing it's worth doing properly. So said my parents, ad nauseam, when I was a child and reluctantly doing household chores. This saying came to mind on Friday when I was reading the Ministry of Justice's consultation paper on phase two of the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act). The so-called phase two of the AML/CFT Act means lawyers, accountants real estate agents, conveyancers and high-value goods dealers will have to comply. This is an important move both for the tackling of crime, and for New Zealand's international reputation….This does not sound like doing the job properly to me. Rather, it sounds like a patchwork approach done on the cheap to try and fool international observers that you have your AML/CFT house in order. New Zealand must do better.
If something's worth doing it's worth doing properly. So said my parents, ad nauseam, when I was a child and reluctantly doing household chores. This saying came to mind on Friday when I was reading the Ministry of Justice's consultation paper on phase two of the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act). The so-called phase two of the AML/CFT Act means lawyers, accountants real estate agents, conveyancers and high-value goods dealers will have to comply. This is an important move both for the tackling of crime, and for New Zealand's international reputation….This does not sound like doing the job properly to me. Rather, it sounds like a patchwork approach done on the cheap to try and fool international observers that you have your AML/CFT house in order. New Zealand must do better.
Yan strikes deal with NZ Police over $40m of assets Jared Savage, NZ Herald, 23 August 2016
Also
Why money launderer will keep NZ citizenship Jared Savage, NZ Herald, 17 August 2017
'Fugitive' Chinese businessman living in NZ for 15 years arrested in China Stuff, 13 November 2016 Donghua Liu returns to China to face charges, Radio NZ, 13 November 2016
William Yan linked to troubled Albany scheme Anne Gibson, NZ Herald, 8 November 2016
Auckland businessman William Yan set to head back to China for questioning Stacy Kirk, Stuff, 23 October 2016
Record forfeiture for alleged money laundering Radio NZ Morning Report, 24 August 2016 (Ron Pol says Chinese fugitive ordered to pay $43 million cannot be said to have bought his way out of jail as politicians and some media assert, and puts NZ's biggest forfeiture into perspective against scale of laundering even on conservative official figures)
Political roundup: 15 recent stories about democracy and integrity in New Zealand Bryce Edwards, NZ Herald, 26 August
'Fugitive' settles case for US$31m, Shanghai Daily, 24 August 2014
China fugitive settles case in New Zealand for US$31m Nick Perry, The China Post, 24 August 2016 (NZ third most popular destination for alleged economic fugitives)
Man wanted by China for fraud settles case in New Zealand for US$31 million Taipei Times, 24 August 2016
Editorial: Yan settlement little comfort to most Kiwis NZ Herald, 24 August 2016 Property developer $7m out of pocket in Albany project Sophie Boot, NZ Herald, 5 Sept 2016
Man with enough names for a relay team Raybon Kan, NZ Herald, 26 August 2016
Why celebrate Bill Liu's jail pass? Barry Soper, NZ Herald, 24 August 2016
New Zealand police strike deal with Chinese corruption suspect Charlotte Greenfield, Reuters International (Swissinfo), 23 August 2016
Revealed: Yan's deal with Aussie police Jared Savage, NZ Herald, 23 August 2016
Yan to pay police nearly $43m Jared Savage, NZ Herald, 23 August 2016
William Yan's previous deal with Australian police Jared Savage, NZ Herald, 23 August 2016
William Yan agrees to pay $43m - and escapes without a conviction, Hewshub News 23 August 2016
Court orders forfeiture of $42.85 million in alleged money laundering case, Stuff, 23 August 2016
Former economic fugitive jailed for embezzlement, corruption ChinaDaily, ecns.cn (China), 26 July 2016
Top Chinese economic fugitive to return after 13 years for medical treatment, ChinaDaily, ecns.cn (China), 25 July 2016
China repatriates 141 fugitive officials since 2015, Xinhua, ecns.cn (China), 21 July 2016 NZ citizen China's 5th most wanted man Fran O'Sullivan, NZ Herald, 21 April 2016
Also
Why money launderer will keep NZ citizenship Jared Savage, NZ Herald, 17 August 2017
'Fugitive' Chinese businessman living in NZ for 15 years arrested in China Stuff, 13 November 2016 Donghua Liu returns to China to face charges, Radio NZ, 13 November 2016
William Yan linked to troubled Albany scheme Anne Gibson, NZ Herald, 8 November 2016
Auckland businessman William Yan set to head back to China for questioning Stacy Kirk, Stuff, 23 October 2016
Record forfeiture for alleged money laundering Radio NZ Morning Report, 24 August 2016 (Ron Pol says Chinese fugitive ordered to pay $43 million cannot be said to have bought his way out of jail as politicians and some media assert, and puts NZ's biggest forfeiture into perspective against scale of laundering even on conservative official figures)
Political roundup: 15 recent stories about democracy and integrity in New Zealand Bryce Edwards, NZ Herald, 26 August
'Fugitive' settles case for US$31m, Shanghai Daily, 24 August 2014
China fugitive settles case in New Zealand for US$31m Nick Perry, The China Post, 24 August 2016 (NZ third most popular destination for alleged economic fugitives)
Man wanted by China for fraud settles case in New Zealand for US$31 million Taipei Times, 24 August 2016
Editorial: Yan settlement little comfort to most Kiwis NZ Herald, 24 August 2016 Property developer $7m out of pocket in Albany project Sophie Boot, NZ Herald, 5 Sept 2016
Man with enough names for a relay team Raybon Kan, NZ Herald, 26 August 2016
Why celebrate Bill Liu's jail pass? Barry Soper, NZ Herald, 24 August 2016
New Zealand police strike deal with Chinese corruption suspect Charlotte Greenfield, Reuters International (Swissinfo), 23 August 2016
Revealed: Yan's deal with Aussie police Jared Savage, NZ Herald, 23 August 2016
Yan to pay police nearly $43m Jared Savage, NZ Herald, 23 August 2016
William Yan's previous deal with Australian police Jared Savage, NZ Herald, 23 August 2016
William Yan agrees to pay $43m - and escapes without a conviction, Hewshub News 23 August 2016
Court orders forfeiture of $42.85 million in alleged money laundering case, Stuff, 23 August 2016
Former economic fugitive jailed for embezzlement, corruption ChinaDaily, ecns.cn (China), 26 July 2016
Top Chinese economic fugitive to return after 13 years for medical treatment, ChinaDaily, ecns.cn (China), 25 July 2016
China repatriates 141 fugitive officials since 2015, Xinhua, ecns.cn (China), 21 July 2016 NZ citizen China's 5th most wanted man Fran O'Sullivan, NZ Herald, 21 April 2016
Govt to adopt Shewan foreign trust proposals David Hargreaves, Interest, 13 July 2016
Recommendations for foreign trusts having stronger initial registration rules and need for annual returns with distribution details will be 'moved on quickly' by Govt. Ron Pol comment: Great to see positive action. Could go further, but putting a dent in crime enabling part great.
Also: BEPS proposal means hasta la vista to foreign trusts Terry Baucher, Interest, 12 August 2017
Government press release: Govt to adopt Shewan recommendations 13 July 2016 and Government's response (PDF)
Govt details its third crack at cleaning up the FSPR, Gareth Vaughan, Interest, 13 July 2016 - must have 'strong connection' to New Zealand to stay on Financial Services Providers Register & Press release
Recommendations for foreign trusts having stronger initial registration rules and need for annual returns with distribution details will be 'moved on quickly' by Govt. Ron Pol comment: Great to see positive action. Could go further, but putting a dent in crime enabling part great.
Also: BEPS proposal means hasta la vista to foreign trusts Terry Baucher, Interest, 12 August 2017
Government press release: Govt to adopt Shewan recommendations 13 July 2016 and Government's response (PDF)
Govt details its third crack at cleaning up the FSPR, Gareth Vaughan, Interest, 13 July 2016 - must have 'strong connection' to New Zealand to stay on Financial Services Providers Register & Press release
NZ's crackdown on money launderers to become more heavy-handed Jenee Tibshraeny, Interest, 12 July 2012
Regulators upping the ante as review of New Zealand's AML/CFT regime looms. RP: Addressing the gap between compliance and effectiveness offers biggest bang for buck. In a practical sense, this suggests not putting all our eggs into the increasingly heavy handed application of the rules basket, as ensuring the rules themselves are better tuned towards effectiveness.
Regulators upping the ante as review of New Zealand's AML/CFT regime looms. RP: Addressing the gap between compliance and effectiveness offers biggest bang for buck. In a practical sense, this suggests not putting all our eggs into the increasingly heavy handed application of the rules basket, as ensuring the rules themselves are better tuned towards effectiveness.
New Zealand: crime enabler or global crime prevention leader? Ron Pol, Interest, 5 July 2016
Ron Pol concedes defeat and leaves parting gift of policy suggestions beyond the Shewan report. The dominant discourse seems as distant from reality as three months ago when the Panama Papers story broke. New Zealand still has policy choices between crime enabler and global crime prevention leader.
Ron Pol concedes defeat and leaves parting gift of policy suggestions beyond the Shewan report. The dominant discourse seems as distant from reality as three months ago when the Panama Papers story broke. New Zealand still has policy choices between crime enabler and global crime prevention leader.
The crowded world of global company agents promoting NZ Gareth Vaughan, Denise McNabb, Richard Smith, Interest, 4 July 2016
Why Mossack Fonseca is far from alone and why this is a problem for New Zealand
Why Mossack Fonseca is far from alone and why this is a problem for New Zealand
10 Panama Papers myths busted & why criminal trusts harm all of us Ron Pol, NZ Listener, 9 July 2016 (online 4 July) - PDF
With the Shewan report joining other experts pointing to the long-ignored elephant in the room, Ron Pol looks at some inconvenient truths about the Panama Papers. He also outlines why criminal use of NZ foreign trusts harm all New Zealanders.
Also: Governor General should sack our corrupt government Dave Kennedy, BSprout, 5 July 2016, Tax haven New Zealand: a (dirty) rose by any other name Tax Justice Network, 5 Nov 2012, Taxation's black hole Chris Barton, NZ Herald, 2 Nov 2012
With the Shewan report joining other experts pointing to the long-ignored elephant in the room, Ron Pol looks at some inconvenient truths about the Panama Papers. He also outlines why criminal use of NZ foreign trusts harm all New Zealanders.
Also: Governor General should sack our corrupt government Dave Kennedy, BSprout, 5 July 2016, Tax haven New Zealand: a (dirty) rose by any other name Tax Justice Network, 5 Nov 2012, Taxation's black hole Chris Barton, NZ Herald, 2 Nov 2012
The Shewan report: objective analysis cuts through sea of BS Ron Pol, Interest, 28 June 2016
Ron Pol cheers John Shewan's report on foreign trust disclosure, says with him exercising the nuclear option the government's choices are now stark
Article copied by Moonlight Chartered Accountants: Ron Pol cheers John Shewan's report on foreign trust disclosure, says with him exercising the nuclear option the government's choices are now stark
Also: NZ flags more disclosure rules for foreign trusts Charlotte Greenfield & Rebecca Howard, Reuters, 27 June 2016 Ron Pol: If adopted, measures in the Shewan report will clearly and materially contribute to the effectiveness of crime prevention capabilities.
Ability to look other way to get tougher, Fran O'Sullivan, NZ Herald, 2 July 2016 Ron Pol: Thinking that getting MossFon files will make much difference is a myth. The issue is not the few hundred they set up but the many thousands of opaque NZ foreign trusts established by hundreds of other firms, in NZ and overseas.
Ron Pol cheers John Shewan's report on foreign trust disclosure, says with him exercising the nuclear option the government's choices are now stark
Article copied by Moonlight Chartered Accountants: Ron Pol cheers John Shewan's report on foreign trust disclosure, says with him exercising the nuclear option the government's choices are now stark
Also: NZ flags more disclosure rules for foreign trusts Charlotte Greenfield & Rebecca Howard, Reuters, 27 June 2016 Ron Pol: If adopted, measures in the Shewan report will clearly and materially contribute to the effectiveness of crime prevention capabilities.
Ability to look other way to get tougher, Fran O'Sullivan, NZ Herald, 2 July 2016 Ron Pol: Thinking that getting MossFon files will make much difference is a myth. The issue is not the few hundred they set up but the many thousands of opaque NZ foreign trusts established by hundreds of other firms, in NZ and overseas.
NZ foreign trusts, the case for change Gareth Vaughan, Denise McNabb, Richard Smith, Interest, 27 June 2016
A brief history of NZ foreign trusts, concluding with suggested changes by Andrew Little, Deborah Russell, Transparency International and Ron Pol
A brief history of NZ foreign trusts, concluding with suggested changes by Andrew Little, Deborah Russell, Transparency International and Ron Pol
The global footprint of dodgy NZ companies, trusts, financial service providers Gareth Vaughan, Denise McNabb & Richard Smith, Interest & Naked Capitalism, 22 June 2016
An interactive map bringing together some of the (known) examples using New Zealand's opaque foreign trusts regime, companies registration and financial services register
Also A private bank above a furniture shop on Auckland's Dominion Road? Gareth Vaughan, Interest, 12 July 2016
An interactive map bringing together some of the (known) examples using New Zealand's opaque foreign trusts regime, companies registration and financial services register
Also A private bank above a furniture shop on Auckland's Dominion Road? Gareth Vaughan, Interest, 12 July 2016
Foreign trusts and companies uncut Jenee Tibshraeny, Interest, 21 June 2016
What the government does not need to know about those setting up NZ foreign trusts. Ron Pol comment: Disconnect between extending (AML) rules and (foreign trusts) policy effectiveness. Quicker and easier option available to address immediate issue PwC partner thinks triggered PM accelerating AML extension. AML extension is in any event a red herring, if intended to fix foreign trusts issue.
What the government does not need to know about those setting up NZ foreign trusts. Ron Pol comment: Disconnect between extending (AML) rules and (foreign trusts) policy effectiveness. Quicker and easier option available to address immediate issue PwC partner thinks triggered PM accelerating AML extension. AML extension is in any event a red herring, if intended to fix foreign trusts issue.
Wall of work still ahead in extension of anti-money laundering law Gareth Vaughan, Interest, 21 June 2016
Much work to do and key decisions to make for phase 2. Ron Pol comment: Reduce complexity and improve regulatory/enforcement effectiveness might be the best reason for not just flipping the switch; actually doing it well, to really make it work effectively.
Also: Straya: strong on terror...unless you buy a house, Leith van Onselen, Macro Business, 21 June 2016
Much work to do and key decisions to make for phase 2. Ron Pol comment: Reduce complexity and improve regulatory/enforcement effectiveness might be the best reason for not just flipping the switch; actually doing it well, to really make it work effectively.
Also: Straya: strong on terror...unless you buy a house, Leith van Onselen, Macro Business, 21 June 2016
Has NZ's reputation been damaged enough [to trigger Shewan review]? Ron Pol Interest 16 June 2016
Ron Pol explores barriers and opportunities facing the Shewan 'review' of NZ foreign trusts
Also: Mossack Fonseca IT worker detained in Geneva, Reuters - Detained on suspicion of removing large amounts of data, but no evidence at this stage also responsible for earlier leak revealed in April
Ron Pol explores barriers and opportunities facing the Shewan 'review' of NZ foreign trusts
Also: Mossack Fonseca IT worker detained in Geneva, Reuters - Detained on suspicion of removing large amounts of data, but no evidence at this stage also responsible for earlier leak revealed in April
Panama Papers: Banned Hong Kong businesswoman operating in NZ Jessica Mutch, OneNews, 31 May 2016
Why should someone banned from operating in the finance industry overseas be allowed to operate here? Ron Pol says that the real issue is less about trying to apply cumbersome and costly verification processes than knowing who actually owns and controls companies and trusts, to help prevent criminal misuse.
Emails reveal why Mossack Fonseca uses NZ foreign trusts OneNews, 31 May 2016 - Email by MossFon's NZ representative explains how to keep clients names hidden
Kiwi trust rules help Kazakh leader keep luxury London mansion OneNews, 30 May 2016
Why should someone banned from operating in the finance industry overseas be allowed to operate here? Ron Pol says that the real issue is less about trying to apply cumbersome and costly verification processes than knowing who actually owns and controls companies and trusts, to help prevent criminal misuse.
Emails reveal why Mossack Fonseca uses NZ foreign trusts OneNews, 31 May 2016 - Email by MossFon's NZ representative explains how to keep clients names hidden
Kiwi trust rules help Kazakh leader keep luxury London mansion OneNews, 30 May 2016
Good policy outcomes, or easy outputs? [PDF], Ron Pol, Crimelight, May 2016
Failure meaningfully to distinguish between 'outcomes' and 'outputs' remains widespread, despite the effort of policymakers in some countries to refocus on the ultimate policy results intended. This article uses the example of crime rates as a measure of crime prevention.
Also (on crime prevention & other policy outcomes):
Social investment - new right agenda or new wine in old bottles? Peter Wilson & Derek Gill, Interest, 8 Jan 2017
Bill English faces tough job shifting the 'lock 'em up' penal policy Jarrod Gilbert, NZ Herald, 27 Dec 2016
New crime stats hide deeper divide over meth and policing John Weekes, Stuff, 31 Oct 2016 (Greg Newbold on crime stats)
Children's Commissioner Andrew Becroft calls on Govt to set measures to cut child poverty rates Lisa Olsen, The Nation, 1 October 2016, The Scoop (text) and The Nation (video)
Getting the measure of child poverty Jonathan Boston, Stuff, 5 Oct 2016 Goals are easy: reducing hardship is tough part Jessa Jaram, NZ Herald, 21 October 2016
NZ customs in global fight against drug smugglers, syndicates NZ Herald, 4 Sept 2016
Watch Christchurch to see how good design can make cities safer Jarrod Gilbert, NZ Herald, 30 August 2016
Police to attend all household burglaries Morgan Tait, NZ Herald, 29 Aug 2016 (media-induced focus on outputs/inputs, and crime perception vs crimes rate trends)
The Meth Project: Ex-ice addicts teaching kids how to dodge drugs Emma Reynolds, News.com.au, 30 August 2016
P Babies: A future uncertain Corazon Miller, NZ Herald, 10 Sept 2016 Ohio Police photograph overdosed couple in car to show drug problem Stuff, 10 Sept 2016
Shocking stories behind Bay of Plenty's P scourge Annemarie Quill, NZ Herald/BOP Times, 29 Aug 2016 (& Ron Pol on'output/outcomes),& Evil side of meth addition revealed, 17 Sep 2016
Meth is everywhere, says reformed addict, Amelie Wade, NZ Herald, 29 August 2016
Police say Meth dealers' clients will receive guidance and support NZ Herald, 29 August 2016 (evidencing a harm prevention 'outcomes' focus)
Mail scam: 18,000 dodgy letters intercepted at border Anna Leask NZ Herald 23 Aug 2016
Massive meth bust inevitable as supply adapts Jarrod Gilbert, NZ Herald, 28 June 2016
Govt at odds over fall in drug seizures Jared Savage, NZ Herald, 4 Jan 2014
Failure meaningfully to distinguish between 'outcomes' and 'outputs' remains widespread, despite the effort of policymakers in some countries to refocus on the ultimate policy results intended. This article uses the example of crime rates as a measure of crime prevention.
Also (on crime prevention & other policy outcomes):
Social investment - new right agenda or new wine in old bottles? Peter Wilson & Derek Gill, Interest, 8 Jan 2017
Bill English faces tough job shifting the 'lock 'em up' penal policy Jarrod Gilbert, NZ Herald, 27 Dec 2016
New crime stats hide deeper divide over meth and policing John Weekes, Stuff, 31 Oct 2016 (Greg Newbold on crime stats)
Children's Commissioner Andrew Becroft calls on Govt to set measures to cut child poverty rates Lisa Olsen, The Nation, 1 October 2016, The Scoop (text) and The Nation (video)
Getting the measure of child poverty Jonathan Boston, Stuff, 5 Oct 2016 Goals are easy: reducing hardship is tough part Jessa Jaram, NZ Herald, 21 October 2016
NZ customs in global fight against drug smugglers, syndicates NZ Herald, 4 Sept 2016
Watch Christchurch to see how good design can make cities safer Jarrod Gilbert, NZ Herald, 30 August 2016
Police to attend all household burglaries Morgan Tait, NZ Herald, 29 Aug 2016 (media-induced focus on outputs/inputs, and crime perception vs crimes rate trends)
The Meth Project: Ex-ice addicts teaching kids how to dodge drugs Emma Reynolds, News.com.au, 30 August 2016
P Babies: A future uncertain Corazon Miller, NZ Herald, 10 Sept 2016 Ohio Police photograph overdosed couple in car to show drug problem Stuff, 10 Sept 2016
Shocking stories behind Bay of Plenty's P scourge Annemarie Quill, NZ Herald/BOP Times, 29 Aug 2016 (& Ron Pol on'output/outcomes),& Evil side of meth addition revealed, 17 Sep 2016
Meth is everywhere, says reformed addict, Amelie Wade, NZ Herald, 29 August 2016
Police say Meth dealers' clients will receive guidance and support NZ Herald, 29 August 2016 (evidencing a harm prevention 'outcomes' focus)
Mail scam: 18,000 dodgy letters intercepted at border Anna Leask NZ Herald 23 Aug 2016
Massive meth bust inevitable as supply adapts Jarrod Gilbert, NZ Herald, 28 June 2016
Govt at odds over fall in drug seizures Jared Savage, NZ Herald, 4 Jan 2014
Doing nothing has a price [PDF] Ron Pol, Dominion Post, 14 May 2016 [Print version of "Panama Papers: Is NZ sweeping reputation time-bomb under carpet"]
Some inconvenient truths about the leaked files that some journalists have already labelled a flop. And a focus on tax evasion misses other key issues.
Also
Palmerston North financial service providers, Islamic sukuk bonds & a foreign trust Gareth Vaughan, Interest, 11 June 2016 (RP comment: NZ's bizarrely loose FSPR and company registration requirements. Bizarre because we can't seem to equate repeated misuse with a system open to abuse, as if the two concepts are not yet meshed in the collective - bureaucratic, political, citizen- consciousness)
AML commitments prevent Govt saving drowning remitters (Bill English rules out 'radical' policy changes), Gareth Vaughan, Interest, 10 June 2016 (RP comment: regulatory policy focus on outcomes over outputs presents possible solutions)
How an ANZ bank account was used as a Ponzi scheme depository, Gareth Vaughan, Interest, 4 June 2016 (RP comment: NZ can't rest on a good reputation, it needs to actively maintain it)
New Zealand, big in the dark corners of the offshore finance world, Gareth Vaughan, Interest, 27 May 2016
Dotcom's clever John Key/tax haven tweet goes viral, Chris Keall, NBR, 17 May 2016 RP: NZ offshore trusts a getaway car manufacturing plant, no criminal immobilisers fitted
Trust in a transparent approach Dominion Post Editorial, 14 May 2016 - openness is the answer both to corruption ands secret foreign trusts [PDF version]
Toby Manhire: Key like a cat on a hot tin roof NZ Herald 13 May 2016 RP: Balanced reporting with some understanding of the issues, nice to see on this topic
Toby & Toby on... The Panama Paper Chase, Radio NZ, 12 May 2016 (and Roger Thompson's complaint 18 May 2016 no grounds to proceed) & Spare cash, Trust NZ to keep it safe 6 April 2016
John Roughan: the haunting truth about foreign trusts NZ Herald, 15 May 2016 RP: Other truths, inaction enables economic an d social harms from crime, and NZ not involved in recovering criminal proceeds
Rodney Hide: Papers turned out to be a fizzer NZ Herald, 15 May 2016 - RP: reveals fundamental misunderstandings of ICIJ documents and Mossack Fonseca files themselves
Some inconvenient truths about the leaked files that some journalists have already labelled a flop. And a focus on tax evasion misses other key issues.
Also
Palmerston North financial service providers, Islamic sukuk bonds & a foreign trust Gareth Vaughan, Interest, 11 June 2016 (RP comment: NZ's bizarrely loose FSPR and company registration requirements. Bizarre because we can't seem to equate repeated misuse with a system open to abuse, as if the two concepts are not yet meshed in the collective - bureaucratic, political, citizen- consciousness)
AML commitments prevent Govt saving drowning remitters (Bill English rules out 'radical' policy changes), Gareth Vaughan, Interest, 10 June 2016 (RP comment: regulatory policy focus on outcomes over outputs presents possible solutions)
How an ANZ bank account was used as a Ponzi scheme depository, Gareth Vaughan, Interest, 4 June 2016 (RP comment: NZ can't rest on a good reputation, it needs to actively maintain it)
New Zealand, big in the dark corners of the offshore finance world, Gareth Vaughan, Interest, 27 May 2016
Dotcom's clever John Key/tax haven tweet goes viral, Chris Keall, NBR, 17 May 2016 RP: NZ offshore trusts a getaway car manufacturing plant, no criminal immobilisers fitted
Trust in a transparent approach Dominion Post Editorial, 14 May 2016 - openness is the answer both to corruption ands secret foreign trusts [PDF version]
Toby Manhire: Key like a cat on a hot tin roof NZ Herald 13 May 2016 RP: Balanced reporting with some understanding of the issues, nice to see on this topic
Toby & Toby on... The Panama Paper Chase, Radio NZ, 12 May 2016 (and Roger Thompson's complaint 18 May 2016 no grounds to proceed) & Spare cash, Trust NZ to keep it safe 6 April 2016
John Roughan: the haunting truth about foreign trusts NZ Herald, 15 May 2016 RP: Other truths, inaction enables economic an d social harms from crime, and NZ not involved in recovering criminal proceeds
Rodney Hide: Papers turned out to be a fizzer NZ Herald, 15 May 2016 - RP: reveals fundamental misunderstandings of ICIJ documents and Mossack Fonseca files themselves
Panama Papers: Is NZ sweeping a reputation time-bomb under the carpet? Ron Pol, Stuff/Business Day, 12 May 2016
Within days of a limited release of some of the 'Panama Papers', some journalists have already labelled it a "flop", cleaving to a new narrative that there's no evidence of Kiwis avoiding tax. This demonstrates a fundamental misunderstanding of the Panama Papers and New Zealand's foreign trusts regime.
Also On the trail of red Bull's money-go-round via Mossack Fonseca NZ Herald, 17 August 2017, AP/Thailand
The Panama Papers - Who you gonna call? Trustbusters! Jasper Lau, Equal Justice Project, May 2016
Blunt warning for foreign trusts that NZ's rules will tighten Tom Pullar-Strecker, Business Day, 13 May 2016 - lawyers in effect warn tax evaders and other criminals to reconsider their investment options
NZ "to consider" setting up company ownership register - Collins, Business Day, 13 May 2016 (and NZ Herald, here)
John Key faces stark & simple policy choice raised by Panama Papers Ron Pol, Interest.co.nz, 8 May 2016 (spiritual homeland of the Stuff article)
Panama Papers and a foreign squatters tax Gareth Morgan, NBR, 12 May 2016
Within days of a limited release of some of the 'Panama Papers', some journalists have already labelled it a "flop", cleaving to a new narrative that there's no evidence of Kiwis avoiding tax. This demonstrates a fundamental misunderstanding of the Panama Papers and New Zealand's foreign trusts regime.
Also On the trail of red Bull's money-go-round via Mossack Fonseca NZ Herald, 17 August 2017, AP/Thailand
The Panama Papers - Who you gonna call? Trustbusters! Jasper Lau, Equal Justice Project, May 2016
Blunt warning for foreign trusts that NZ's rules will tighten Tom Pullar-Strecker, Business Day, 13 May 2016 - lawyers in effect warn tax evaders and other criminals to reconsider their investment options
NZ "to consider" setting up company ownership register - Collins, Business Day, 13 May 2016 (and NZ Herald, here)
John Key faces stark & simple policy choice raised by Panama Papers Ron Pol, Interest.co.nz, 8 May 2016 (spiritual homeland of the Stuff article)
Panama Papers and a foreign squatters tax Gareth Morgan, NBR, 12 May 2016
Money laundering moves 'red herring' - expert Hamish Fletcher, NZ Herald, 10 May 2016
John Key signalling that the Government will now move quickly to extend anti-money laundering laws to include lawyers, accountants and real estate agents is not a solution to dealing with foreign trusts (& for more detail Ron Pol's first comment in response to an earlier article," here)
Also
Brazilian in $30m bribery case spills beans, and NZ link TV One News 22 June 2013. Accountant Bruce Sheppard's firm made enquiries to establish Procopio was a "well qualified [and] respected business person" and "sighted all of the identification documentation that was required under the anti-money laundering regulations". One of the firm's partners even flew to Brazil to meet him. Their role was "like a lawyer forming a company", and his firm "had no involvement in any of ther transactions of the structure [they created]". Sheppard found that "these structures [where entities have complete secrecy] are a cowpat - they attract flies"
NZ structure helped man hide millions, Radio NZ, 22 June 2013 Sheppard says Procopio presented as a plausible client and his firm went to extra lengths to prove he was legitimate. He was introduced by "an international banker of repute" and a Brazilian barrister vouched for the business man. "It is very difficult when you have someone who looks respectable at the front end of the business"
How to sidestep NZ disclosure rules Radio NZ 22 June - MossFon NZ established a complex structure of companies with nominee shareholders and directors but no mentioon of thre real owners in Ecuador, and advised them to avoid countries with information-sharing arrangements with NZ, presumably to side-step the disclosure system. Double insultation shields the oweners behind proxies and from double-tax agreements.
NZ lawyer on Chinese bypassing foreign lending bans, Newshub, 21 June 2016. For practical reasons and for ease of management a group of Chinese investors may put property in the name of someone they trust like a 27 year old living in New Zealand. "Messy situations start from the fact we don't know enough about who owns this property" says lawyer Royal Reed. She says that a policy that required poroperty buyers to disclose te source of their funding would make a few New Zealanders squirm. "So you don't ask them 'where did the money come from?' because that's highly offensive". The systems are naive and trusting she says. "That's where we've let ourselves down, we have trusted for so long hoping everyone that comes in is a clone of a Kiwi avberage reasonable person".
Corruption currents (Money laundering) Wall Street Journal - referencing NZ Herald 'red herring' article
Government to accelerate second round of AML rules Gareth Vaughan, Interest.co.nz, 10 May 2016
Panama Papers fallout speeds up NZ's anti-money laundering legislation Jo Moir, Business Day, 31 May 2015
AML legislation to cover lawyers, accountants and real estate agents has been moved up the priority queue and is expected to be in place by mid next year. In comments, Ron Pol suggests that extending AML tranche 2 to 'fix' NZ foreign trusts (which as well as legitimate uses by their design enables and facilitates crime) is a red herring. The only way to do that is to amend the foreign trust rules themselves. As to the AML rules, the issue is not whether we have them, but whether they work. There is a lot of evidence suggesting otherwise. So, time spent on policy effectiveness may be useful, at least if the goal is crime prevention.
NZ to hasten completion of anti-money laundering regime: Key Patrick Smellie, NBR, 31 May 2016
The furore over the Panama Papers is hastening completion of NZ's AML regime, with lawyers, accountants and real estate agents to be targeted. Ron Pol adds in comments that extending AML/CFT laws may be due for other reasons, but the only thing that will fix NZ's foreign trusts regime is to adjust its design, so that it no longer allows organised crime groups to use NZ as an invisibility cloak over their activities.
Adams sees AML round 2 by mid 2017 Bernard Hickey, Interest, 31 May 2016
Also
Examples of lawyers relying on what clients tell them, and lawyers warning the need to reconsider investment choices before law tightening
John Key signalling that the Government will now move quickly to extend anti-money laundering laws to include lawyers, accountants and real estate agents is not a solution to dealing with foreign trusts (& for more detail Ron Pol's first comment in response to an earlier article," here)
Also
Brazilian in $30m bribery case spills beans, and NZ link TV One News 22 June 2013. Accountant Bruce Sheppard's firm made enquiries to establish Procopio was a "well qualified [and] respected business person" and "sighted all of the identification documentation that was required under the anti-money laundering regulations". One of the firm's partners even flew to Brazil to meet him. Their role was "like a lawyer forming a company", and his firm "had no involvement in any of ther transactions of the structure [they created]". Sheppard found that "these structures [where entities have complete secrecy] are a cowpat - they attract flies"
NZ structure helped man hide millions, Radio NZ, 22 June 2013 Sheppard says Procopio presented as a plausible client and his firm went to extra lengths to prove he was legitimate. He was introduced by "an international banker of repute" and a Brazilian barrister vouched for the business man. "It is very difficult when you have someone who looks respectable at the front end of the business"
How to sidestep NZ disclosure rules Radio NZ 22 June - MossFon NZ established a complex structure of companies with nominee shareholders and directors but no mentioon of thre real owners in Ecuador, and advised them to avoid countries with information-sharing arrangements with NZ, presumably to side-step the disclosure system. Double insultation shields the oweners behind proxies and from double-tax agreements.
NZ lawyer on Chinese bypassing foreign lending bans, Newshub, 21 June 2016. For practical reasons and for ease of management a group of Chinese investors may put property in the name of someone they trust like a 27 year old living in New Zealand. "Messy situations start from the fact we don't know enough about who owns this property" says lawyer Royal Reed. She says that a policy that required poroperty buyers to disclose te source of their funding would make a few New Zealanders squirm. "So you don't ask them 'where did the money come from?' because that's highly offensive". The systems are naive and trusting she says. "That's where we've let ourselves down, we have trusted for so long hoping everyone that comes in is a clone of a Kiwi avberage reasonable person".
Corruption currents (Money laundering) Wall Street Journal - referencing NZ Herald 'red herring' article
Government to accelerate second round of AML rules Gareth Vaughan, Interest.co.nz, 10 May 2016
Panama Papers fallout speeds up NZ's anti-money laundering legislation Jo Moir, Business Day, 31 May 2015
AML legislation to cover lawyers, accountants and real estate agents has been moved up the priority queue and is expected to be in place by mid next year. In comments, Ron Pol suggests that extending AML tranche 2 to 'fix' NZ foreign trusts (which as well as legitimate uses by their design enables and facilitates crime) is a red herring. The only way to do that is to amend the foreign trust rules themselves. As to the AML rules, the issue is not whether we have them, but whether they work. There is a lot of evidence suggesting otherwise. So, time spent on policy effectiveness may be useful, at least if the goal is crime prevention.
NZ to hasten completion of anti-money laundering regime: Key Patrick Smellie, NBR, 31 May 2016
The furore over the Panama Papers is hastening completion of NZ's AML regime, with lawyers, accountants and real estate agents to be targeted. Ron Pol adds in comments that extending AML/CFT laws may be due for other reasons, but the only thing that will fix NZ's foreign trusts regime is to adjust its design, so that it no longer allows organised crime groups to use NZ as an invisibility cloak over their activities.
Adams sees AML round 2 by mid 2017 Bernard Hickey, Interest, 31 May 2016
Also
Examples of lawyers relying on what clients tell them, and lawyers warning the need to reconsider investment choices before law tightening
John Key faces 'stark & simple' policy choice raised by Panama Papers Ron Pol, Interest.co.nz, 8 May 2016
Ron Pol compares one part of NZ's foreign trusts regime to a criminal getaway car manufacturing industry and asks whether the PM will take action or double down on offshore trusts
Also:
Putting the Panama Papers in context Gareth Vaughan, Interest.co.nz - PM failing in role as promoter and custodian of NZ's international standing and reputation
Key attacks Hager on Panama Papers reports Bernard Hickey, Interest.co.nz, 9 May 2016
NZ absolutely, conclusively is a tax haven TV One News, 9 May 2016 (initial results from NZ journalists accessing MossFon files)
Ron Pol compares one part of NZ's foreign trusts regime to a criminal getaway car manufacturing industry and asks whether the PM will take action or double down on offshore trusts
Also:
Putting the Panama Papers in context Gareth Vaughan, Interest.co.nz - PM failing in role as promoter and custodian of NZ's international standing and reputation
Key attacks Hager on Panama Papers reports Bernard Hickey, Interest.co.nz, 9 May 2016
NZ absolutely, conclusively is a tax haven TV One News, 9 May 2016 (initial results from NZ journalists accessing MossFon files)
Trust Issues: What's blocking effective policy debate about NZ's offshore trusts? Ron Pol, NZ Listener, 5 May 2016 - PDF
Last month thousands of articles were published worldwide about the so-called 'Panama Papers'. They drew heated argument about New Zealand's role, but scant policy debate. This is my shot at an objective, non-partisan view, across the political spectrum.
Also
The Green party needs to split or focus Alex Tarrant, Interest, 29 July 2017 (Ron Pol: Comments about Green party strategy, referencing Listener article)
John Key only politician directly named in Panama Papers whistleblowers' statement Gareth Vaughan, Interest, 7 May 2016 (Ron Pol: NZ offshore trusts getaway car, not criminal bank)
Transparency International says foreign trust inquiry fails to address fundamental issues Garth Vaughan, Interest, 5 May 2016
NZ's foreign trust review slammed as 'limited' by transparency international Sam Sachdeva, Stuff Business, 5 May 2016
Review of foreign trust disclosure rules, 11 April 2016, & Scope of review (PDF)
Last month thousands of articles were published worldwide about the so-called 'Panama Papers'. They drew heated argument about New Zealand's role, but scant policy debate. This is my shot at an objective, non-partisan view, across the political spectrum.
Also
The Green party needs to split or focus Alex Tarrant, Interest, 29 July 2017 (Ron Pol: Comments about Green party strategy, referencing Listener article)
John Key only politician directly named in Panama Papers whistleblowers' statement Gareth Vaughan, Interest, 7 May 2016 (Ron Pol: NZ offshore trusts getaway car, not criminal bank)
Transparency International says foreign trust inquiry fails to address fundamental issues Garth Vaughan, Interest, 5 May 2016
NZ's foreign trust review slammed as 'limited' by transparency international Sam Sachdeva, Stuff Business, 5 May 2016
Review of foreign trust disclosure rules, 11 April 2016, & Scope of review (PDF)
Searchable database likely to implicate kiwis Tom Pullar-Strecker, Stuff, 27 April 2016
Journalists name day for Panama papers 'data dump', here on 10 May, 6am, NZ time. A "huge amount" would likely not be made public as ICIJ balance privacy with public interest, a difficult task says money laundering expert Ron Pol. "Some of the individuals who are not well known may be normal individuals doing legitimate things but others might be unknown because they happen to be criminals."
Journalists name day for Panama papers 'data dump', here on 10 May, 6am, NZ time. A "huge amount" would likely not be made public as ICIJ balance privacy with public interest, a difficult task says money laundering expert Ron Pol. "Some of the individuals who are not well known may be normal individuals doing legitimate things but others might be unknown because they happen to be criminals."
Tax breaks a la Panama Papers not for everyday kiwis Laura Walters, Stuff, 19 April 2016
The infamous Panama Papers have brought to light some of New Zealand's legal loopholes - so can you get a tax break like the super-rich?
The infamous Panama Papers have brought to light some of New Zealand's legal loopholes - so can you get a tax break like the super-rich?
Forget the tax haven semantics and focus on the real issues Ron Pol, Interest.co.nz, 11 April 2016
New Zealand's reputation offers a competitive advantage, and opportunity.
Also: ASB Securities Morning Brief 13 April 2016
Tax haven New Zealand: a (dirty) rose by any other name Tax Justice Network, 5 Nov 2012
Taxation's black hole Chris Barton, NZ Herald, 2 Nov 2012
New Zealand's reputation offers a competitive advantage, and opportunity.
Also: ASB Securities Morning Brief 13 April 2016
Tax haven New Zealand: a (dirty) rose by any other name Tax Justice Network, 5 Nov 2012
Taxation's black hole Chris Barton, NZ Herald, 2 Nov 2012
Panama Papers: The failed defence for foreign trusts Tom Pullar-Strecker, Stuff,11 April 2016
No one seems to have a good word to say for foreign trusts set up in New Zealand. Even the lawyers and accountants helping set them up have been very quiet.
No one seems to have a good word to say for foreign trusts set up in New Zealand. Even the lawyers and accountants helping set them up have been very quiet.
Foreign trusts hiding darker secrets than tax avoidance Tom Pullar-Strecker, Stuff, 5 April 2016
"My guess would be probably most of [the trusts] are legitimate. The next big chunk is probably tax evasion. After that it is your oligarchs hiding their wealth, and then there will be money-laundering by criminal organisations." And picked up by NMTA (US), here.
Also commentary at:
Panama Papers: PM says Panama link 'irrelevant' (formerly Labour identifies firm allowed to buy 'sensitive' NZ land), Stuff, Rosanna Price, 28 April 2016, Ron Pol: Does OIO stop at shell company 'owner', another offshore company as shareholder, or nominee director? Does it know the real owner when approving land sales?
Measuring public science by dollar value alone 'stupid' says top science adviser, NBR, Sophie Boot, 27 April 2016 Ron Pol: outcomes measure more relevant than output measures
Key rejects calls to publish tax records, Interest.co.nz, Bernard Hickey, 12 April 2016 Ron Pol: Politicians disclosing income a sideshow, lets use MossFon to track serious criminals
The failed defence for foreign trusts, Stuff, Tom Pullar-Strecker, 11 April 2016 Ron Pol: thousands of trusts likely involved in tax evasion, money laundering
Govt to review overseas trust disclosure rules, Interest.co.nz, 11 April 2016 Ron Pol: Panama papers tip of iceberg
Terry Baucher looks at the rules around, and usage of, trusts, Interest.co.nz, 7 April 2016 Ron Pol: investigate transactions undertaken to find criminality beyond tax evasion
No surprise NZ trust laws in Mossack Fonseca says Russel Norman, Stuff, 4 April 2016
Mossack Fonseca's NZ company and trust business operate without having to comply with NZ's AML laws, Gareth Vaughan, interest.co.nz, 4 April 2016 Ron Pol: Accountants and lawyers are subject to "AML lite" in limited areas, and lawyers' conduct rules in certain cases cast wider obligations than the "AML-lite" legislation itself
Greens, Labour call on Govt to tighten loopholes, Bernard Hickey, 4 April 2016 Ron Pol: To reduce harm and improve economic well-being, distinguish between legitimate & illegitimate
Top multinationals pay almost no tax in New Zealand NZ Herald, Matt Nippert, 18 March 2016 (Update: Govt planning action to target multinationals over tax, 14 Dec 2016)
"My guess would be probably most of [the trusts] are legitimate. The next big chunk is probably tax evasion. After that it is your oligarchs hiding their wealth, and then there will be money-laundering by criminal organisations." And picked up by NMTA (US), here.
Also commentary at:
Panama Papers: PM says Panama link 'irrelevant' (formerly Labour identifies firm allowed to buy 'sensitive' NZ land), Stuff, Rosanna Price, 28 April 2016, Ron Pol: Does OIO stop at shell company 'owner', another offshore company as shareholder, or nominee director? Does it know the real owner when approving land sales?
Measuring public science by dollar value alone 'stupid' says top science adviser, NBR, Sophie Boot, 27 April 2016 Ron Pol: outcomes measure more relevant than output measures
Key rejects calls to publish tax records, Interest.co.nz, Bernard Hickey, 12 April 2016 Ron Pol: Politicians disclosing income a sideshow, lets use MossFon to track serious criminals
The failed defence for foreign trusts, Stuff, Tom Pullar-Strecker, 11 April 2016 Ron Pol: thousands of trusts likely involved in tax evasion, money laundering
Govt to review overseas trust disclosure rules, Interest.co.nz, 11 April 2016 Ron Pol: Panama papers tip of iceberg
Terry Baucher looks at the rules around, and usage of, trusts, Interest.co.nz, 7 April 2016 Ron Pol: investigate transactions undertaken to find criminality beyond tax evasion
No surprise NZ trust laws in Mossack Fonseca says Russel Norman, Stuff, 4 April 2016
Mossack Fonseca's NZ company and trust business operate without having to comply with NZ's AML laws, Gareth Vaughan, interest.co.nz, 4 April 2016 Ron Pol: Accountants and lawyers are subject to "AML lite" in limited areas, and lawyers' conduct rules in certain cases cast wider obligations than the "AML-lite" legislation itself
Greens, Labour call on Govt to tighten loopholes, Bernard Hickey, 4 April 2016 Ron Pol: To reduce harm and improve economic well-being, distinguish between legitimate & illegitimate
Top multinationals pay almost no tax in New Zealand NZ Herald, Matt Nippert, 18 March 2016 (Update: Govt planning action to target multinationals over tax, 14 Dec 2016)
The Panama Papers: Secrets of the Super Rich Four Corners, 4 April 2016
One of the first and most extensive exposes. Criminals start at 4:59. Jack Blum: The corporate use of this system protects the criminals who use the same system. Corporations say it's legitimate, the OECD allows us to move profits around to minimise tax. Criminals also hide their money and avoid detection using the same secrecy system. James Henry: They are using the best such structures anywhere in the world, not just Panama.
One of the first and most extensive exposes. Criminals start at 4:59. Jack Blum: The corporate use of this system protects the criminals who use the same system. Corporations say it's legitimate, the OECD allows us to move profits around to minimise tax. Criminals also hide their money and avoid detection using the same secrecy system. James Henry: They are using the best such structures anywhere in the world, not just Panama.
Analysts warn banks not identifying suspicious transactions Laura Bootham, Radio NZ, 10 March 2016
Banks and intelligence agencies typically do a great job identifying unusual financial transactions, but terrorism financing is fundamentally different from money laundering. This means that anti-money laundering methods are not well suited to detecting terrorism financing. Similarly, if lawyers and accountants are brought under the primary legislation it may make some positive difference in relation to money laundering detection, but will arguably have much less impact in terms of materially improving the effectiveness of detecting terrorism financing.
Banks and intelligence agencies typically do a great job identifying unusual financial transactions, but terrorism financing is fundamentally different from money laundering. This means that anti-money laundering methods are not well suited to detecting terrorism financing. Similarly, if lawyers and accountants are brought under the primary legislation it may make some positive difference in relation to money laundering detection, but will arguably have much less impact in terms of materially improving the effectiveness of detecting terrorism financing.
Getting money out of China by losing in arbitration Dan Harris, 14 Feb 2016
Cooling down the hot money from China's high-stakes gamblers Christopher Adams, NZ Herald, 30 Jan 2016
China's capital controls could lift the proportion of criminal funds coming into New Zealand, if new controls are more effective against legitimately earned income than dirty money.
China's capital controls could lift the proportion of criminal funds coming into New Zealand, if new controls are more effective against legitimately earned income than dirty money.
UK agents rapped for too few 'suspicious activity reports' EstateAgentToday (UK)
Britis estate agents reported only 179 suspicions of money laundering in a year, according to Transparency International.
Ron Pol comments: (1) AML checks compared to neighbourhood watch, and (2) Why AML checks are good for business.
Britis estate agents reported only 179 suspicions of money laundering in a year, according to Transparency International.
Ron Pol comments: (1) AML checks compared to neighbourhood watch, and (2) Why AML checks are good for business.
Dirty cash: The fight against money laundering - should NZ do more? Hamish Fletcher, NZ Herald, 10 Sept 2015
Legal moves to combat money laundering go only so far, and New Zealand is giving overseas criminals an advantage over their local counterparts in evading seizure of ill-gotten gains, reports Hamish Fletcher.
Cited in
The politics of AML: Socio-political considerations for money laundering regulation Trulioo [industry] 13 March 2017
For all the efforts,..unfortunately money laundering continues to be ongoing and prevalent. As a recent article in Politico states, “most money launderers get away with it.” That article...comes to the conclusion that over 99 percent of money laundering is not caught. Or as Ron Pol, a respected money-laundering expert, states, “Anti-money laundering legislation is the least effective of any anti-crime measure, anywhere.”
Paul Manafort was stupid or unlucky. Most money launderers get away with it, Politico, 27 Feb 2018
Congressional testimony (Senate Judiciary Committee) by John Cassara, Modernizing AML laws to combat money laundering and terrorist financing, 28 Nov 2017 - opening paragraph cites Ron Pol “anti-money laundering legislation is the least effective of any anti-crime measure, anywhere”.
Legal moves to combat money laundering go only so far, and New Zealand is giving overseas criminals an advantage over their local counterparts in evading seizure of ill-gotten gains, reports Hamish Fletcher.
Cited in
The politics of AML: Socio-political considerations for money laundering regulation Trulioo [industry] 13 March 2017
For all the efforts,..unfortunately money laundering continues to be ongoing and prevalent. As a recent article in Politico states, “most money launderers get away with it.” That article...comes to the conclusion that over 99 percent of money laundering is not caught. Or as Ron Pol, a respected money-laundering expert, states, “Anti-money laundering legislation is the least effective of any anti-crime measure, anywhere.”
Paul Manafort was stupid or unlucky. Most money launderers get away with it, Politico, 27 Feb 2018
Congressional testimony (Senate Judiciary Committee) by John Cassara, Modernizing AML laws to combat money laundering and terrorist financing, 28 Nov 2017 - opening paragraph cites Ron Pol “anti-money laundering legislation is the least effective of any anti-crime measure, anywhere”.
DIA's first formal public warning over lack of adequate AML compliance Gareth Vaughan, Interest.co.nz, 2 Sep 2015
The Department of Internal Affairs has issued its first formal public warning under AML/CFT, to Jin Yuan Finance, and reveals another 13 non-public warnings have been issued.
The Department of Internal Affairs has issued its first formal public warning under AML/CFT, to Jin Yuan Finance, and reveals another 13 non-public warnings have been issued.
Kiwi link in $350m fraud claim Matt Nippert, NZ Herald, 28 Aug 2015
An innocuous-sounding New Zealand company has emerged as a key enabler of a spectacular $350m heist that's been described as "if Oceans 11 had been masterminded by a Bond villain." Recent amendments requiring companies to have resident directors won't close all loopholes. If police happen to arrest another Auckland burger flipper, or an accountant touting their services as a resident director, they'll still be no closer to the criminal kingpins.
Also: Important court win for the FMA, Gareth Vaughan, Interest.co.nz, 13 May 2016, Court rules in favour of Vivier company struck off, Stuff, 28 Sept 2015, List of companies removed from Register by FMA, at 2 Sept 2015
An innocuous-sounding New Zealand company has emerged as a key enabler of a spectacular $350m heist that's been described as "if Oceans 11 had been masterminded by a Bond villain." Recent amendments requiring companies to have resident directors won't close all loopholes. If police happen to arrest another Auckland burger flipper, or an accountant touting their services as a resident director, they'll still be no closer to the criminal kingpins.
Also: Important court win for the FMA, Gareth Vaughan, Interest.co.nz, 13 May 2016, Court rules in favour of Vivier company struck off, Stuff, 28 Sept 2015, List of companies removed from Register by FMA, at 2 Sept 2015
Bill English: Auckland property prices may fall Anne Gibson, NZ Herald, 18 Aug 2015
"If speculators and money launderers are having a big effect [the Government's October property investor tax moves] will affect them" says Minister of Finance.
Also: Government begins consultation on plans for a withholding tax on offshore-based sellers of NZ houses, David Hargreaves, Interest.co.nz, 31 Aug 2015. Lawyers will collect the tax on IRD's behalf. Ron Pol responds to 'Buzby' asking "will it really help stop money laundering?" Flow dynamics - Loss of money is escaping China's porous capital controls, The Economist, 19 Sept 2015.Official data indicate that more than $150 billion of capital left China in August - a record. Barfoot & Thompson boss sees Chinese interest in Auckland property lifting in October, Bernard Hickey, Interest.co.nz, 24 Sept 2015. Offshore buyers starting to close their wallets as changes start to take effect. Thompson says may see uplift from Chinese buyers with October's annual holiday, but they are only a portion of overseas buyers, with a number coming from Russia, the UK and Europe. Australia 6 weeks from a housing collapse, US report warns NZ Herald, Frank Chung (news.com.au), 12 Sept 2016
"If speculators and money launderers are having a big effect [the Government's October property investor tax moves] will affect them" says Minister of Finance.
Also: Government begins consultation on plans for a withholding tax on offshore-based sellers of NZ houses, David Hargreaves, Interest.co.nz, 31 Aug 2015. Lawyers will collect the tax on IRD's behalf. Ron Pol responds to 'Buzby' asking "will it really help stop money laundering?" Flow dynamics - Loss of money is escaping China's porous capital controls, The Economist, 19 Sept 2015.Official data indicate that more than $150 billion of capital left China in August - a record. Barfoot & Thompson boss sees Chinese interest in Auckland property lifting in October, Bernard Hickey, Interest.co.nz, 24 Sept 2015. Offshore buyers starting to close their wallets as changes start to take effect. Thompson says may see uplift from Chinese buyers with October's annual holiday, but they are only a portion of overseas buyers, with a number coming from Russia, the UK and Europe. Australia 6 weeks from a housing collapse, US report warns NZ Herald, Frank Chung (news.com.au), 12 Sept 2016
Let's curb 'dirty' money artificially inflating house prices Ron Pol, Interest.co.nz, 5 Aug 2015
Disregarding easy policy settings suggests a missing dimension in Auckland's housing debate. New controls should focus on ways to curb criminal investment boosting the profits of organised crime groups and artificially distorting prices. (And outlines why the glib response, that high prices in Sydney means that the policy has failed in Australia, is flawed).
Also: Does a Vancouver style foreign property buyer tax have majority parliamentary support Jenee Tibshraeny, Interest, 11 Oct 2016 (Key says foreigners pushing up prices "fictitious", ACTs Seymour says foreign direct investment including property purchases provides "valuable cash injection" for the economy) Smith rules out land tax for foreigners, Bernard Hickey, Interest.co.nz, 11 May 2016, PM John Key denies non-resident buyers a major factor, Bernard Hickey, Interest.co.nz, 20 July 2015, Key said implementing Australian style restrictions on foreign buyers only buying new homes or 'off the plan' homes would not work as it had not worked in Australia. Key says land tax possible under TPP, Interest.co.nz, 13 October 2015. John Key says bans on foreign purchasers don't work. "If you look at Australia, where they have theoretically got a ban, it's been spectacularly unsuccessful". Be realistic, first home buyers told, Radio NZ News, 16 April 2015. Housing and Building Minister Nick Smith claims even with Australian's measures, house price inflation and affordability is still an issue there. Foreigners buying 29pc of homes, not 3pc - lawyer Anne Gibson, NZ Herald, 24 Aug 2016
Disregarding easy policy settings suggests a missing dimension in Auckland's housing debate. New controls should focus on ways to curb criminal investment boosting the profits of organised crime groups and artificially distorting prices. (And outlines why the glib response, that high prices in Sydney means that the policy has failed in Australia, is flawed).
Also: Does a Vancouver style foreign property buyer tax have majority parliamentary support Jenee Tibshraeny, Interest, 11 Oct 2016 (Key says foreigners pushing up prices "fictitious", ACTs Seymour says foreign direct investment including property purchases provides "valuable cash injection" for the economy) Smith rules out land tax for foreigners, Bernard Hickey, Interest.co.nz, 11 May 2016, PM John Key denies non-resident buyers a major factor, Bernard Hickey, Interest.co.nz, 20 July 2015, Key said implementing Australian style restrictions on foreign buyers only buying new homes or 'off the plan' homes would not work as it had not worked in Australia. Key says land tax possible under TPP, Interest.co.nz, 13 October 2015. John Key says bans on foreign purchasers don't work. "If you look at Australia, where they have theoretically got a ban, it's been spectacularly unsuccessful". Be realistic, first home buyers told, Radio NZ News, 16 April 2015. Housing and Building Minister Nick Smith claims even with Australian's measures, house price inflation and affordability is still an issue there. Foreigners buying 29pc of homes, not 3pc - lawyer Anne Gibson, NZ Herald, 24 Aug 2016
NZ needs to face up to the impact of money laundering on Auckland housing Caroline Courtney, Interest.co.nz, 4 Aug 2015
Caroline Courtney argues that John Key ought to take a leaf out of his mate David Cameron's book on combating money laundering.
Caroline Courtney argues that John Key ought to take a leaf out of his mate David Cameron's book on combating money laundering.
Taking us to the cleaners Caroline Courtney, North & South magazine, July 2015 (also here)
A staggering amount of ill-gotten gains is “washed clean” in safe, law-abiding, little New Zealand every year. Much of this dirty business goes on right under our noses, in places most of us would never suspect. Caroline Courtney discovers just how widespread money laundering is – and how the launderers mostly manage to get away with it.
Cited in Parliament, by Barry Coates MP (first reading AML/CFT Amendment Bill, 28 March 2017) here (Green party website)
A staggering amount of ill-gotten gains is “washed clean” in safe, law-abiding, little New Zealand every year. Much of this dirty business goes on right under our noses, in places most of us would never suspect. Caroline Courtney discovers just how widespread money laundering is – and how the launderers mostly manage to get away with it.
Cited in Parliament, by Barry Coates MP (first reading AML/CFT Amendment Bill, 28 March 2017) here (Green party website)
Let's start tracking hot real estate money Tim Hunter, National Business Review, 15 May 2015
New Zealand, where there are no restrictions on foreign investment in housing, must be an increasingly attractive target for foreign investors. We also must take account of criminal investment reports Tim Hunter. This money may be derived from or used in particularly nasty activities such as terrorism, sex trafficking and illegal arms trading, as well as plain old theft, corruption and extortion, yet New Zealand doesn't have any ideas of the numbers. Hunter concludes that New Zealand should collect proper data on who is buying real estate.
New Zealand, where there are no restrictions on foreign investment in housing, must be an increasingly attractive target for foreign investors. We also must take account of criminal investment reports Tim Hunter. This money may be derived from or used in particularly nasty activities such as terrorism, sex trafficking and illegal arms trading, as well as plain old theft, corruption and extortion, yet New Zealand doesn't have any ideas of the numbers. Hunter concludes that New Zealand should collect proper data on who is buying real estate.
Swiss tax haven no longer a reality Richard Meadows, Stuff, 16 Jun 2014
Tax officials snooping around secret Swiss bank accounts may be a decade too late, with criminals constantly one step ahead of authorities. Ron Pol said it was a "stark reality" that the world of offshore finance was in a constant state of change. "In a practical sense, this means that whatever most experts say is usually at least several years out of date." The only people at the cutting edge were the criminals themselves, and a small group of lawyers and accountants either assisting them or "wilfully blind" to their activities.
Tax officials snooping around secret Swiss bank accounts may be a decade too late, with criminals constantly one step ahead of authorities. Ron Pol said it was a "stark reality" that the world of offshore finance was in a constant state of change. "In a practical sense, this means that whatever most experts say is usually at least several years out of date." The only people at the cutting edge were the criminals themselves, and a small group of lawyers and accountants either assisting them or "wilfully blind" to their activities.
Money laundering lawyers? Ron Pol, NewLaw, Jun 2014
What anti-money laundering laws are really all about (it's gritty stuff, not esoteric at all), and how the legislation affects lawyers - as part of the justice community, and their own businesses.
What anti-money laundering laws are really all about (it's gritty stuff, not esoteric at all), and how the legislation affects lawyers - as part of the justice community, and their own businesses.
Beyond cash-stuffed briefcases (Parts 1 & 2) Ron Pol, LawTalk, 23 May 2014 & 7 Jun 2014
Busting the pervasive myth that money laundering affecting professional services firms mostly involves cash transactions. Why criminal entrepreneurs and their money laundering colleagues seldom use cash in their dealings with lawyers, accountants and real estate agents. Failure to spot obvious red flags and ask basic questions may come to be prosecuted as 'wilful blindness' if beyond mere 'unwitting involvement'. The next transition of crime disruption strategies may focus on businesses used to facilitate fund transfers and asset purchases during all phases of criminal activity.
Also:
Guilty verdict 'a chill' for MPs, Sunday Star-Times, 8 June 2014 - Former National Party President Michelle Boag said by long-standing convention political candidates weren't expected to probe closely the anonymity of donations. However, Justice Wylie's ruling effectively said that John Banks should have probed it.
R v John Archibald Banks, Reasons for verdict of Wylie J, 5 June 2014 - The guilty decision resulted from Dotcom donations claimed as anonymous. The judgment also addressed when "wilful blindness" is sufficient to meet the test of "knowledge". In relation to a SkyCity donation also claimed as anonymous there was insufficient evidence in the circumstances that Mr Banks' lack of knowledge was wilful blindness.
Bring lawyers under AML laws, LawTalk, 23 May 2014 - The Australian Bankers Association says that "money laundering/terrorist financing incidents commonly involve a gatekeeper (solicitor, accountant), a high value goods dealer or a real estate industry person/entity". They consider "it is vital that tranche 2 is implemented [to bring those professions in line with international norms, and] to close the current gap in the legislation" and that lack of implementation of tranche 2 represents a "high jurisdictional risk" to Australia. Tranche 2 has also not yet been implemented in New Zealand.
New law to target "corrupt lawyers" who help criminals, Legal Futures (UK), 4 June 2014 - Minister Karen Bradley says the new offence of participation in an organised crime group "sends out a clear message to [corrupt lawyers, accountants and other professionals] - if you are helping to oil the wheels of organised crime, you will be prosecuted and face being jailed."
Lawyers' ethics plugs leaky legislation Ron Pol, LawTalk 28 April 2014
Lawyers' ethical rules may sometimes be more effective than specialist AML/CFT legislation. But accounting and real estate professionals may not fare so well.
Operating trust accounts Jeremy Kennerley, NZLS Financial Assurance Manager, LawTalk 11 April 2014
Handling of cash deposits; Law Society suggests placing the onus on clients to bank large or frequent cash deposits (and mentions obligations to report suspicious transactions).
Also Letter to editor (and NZLS Response) Law Society advice on operating trust accounts, Ashley Balls, Law Talk, 9 May 2014 (concern that 'over-simplified' message about cash-handling may not fully explain obligation to report suspicious transactions or risk facilitating money laundering; Law Society clarifies obligations to report suspicious transactions). Also see Beyond cash filled briefcases.
Property at risk from money launderers Matt Nippert, Sunday Star-Times, 16 Feb 2014
New regulations tightening money laundering regulations for banks risk driving black money into real estate.
Money laundering and real estate - part 2 Ron Pol & Ashley Balls, Real Estate Authority Newsletter, Feb 2014
Money laundering risks faced by real estate agents and practical ways to cut risk.
Busting the pervasive myth that money laundering affecting professional services firms mostly involves cash transactions. Why criminal entrepreneurs and their money laundering colleagues seldom use cash in their dealings with lawyers, accountants and real estate agents. Failure to spot obvious red flags and ask basic questions may come to be prosecuted as 'wilful blindness' if beyond mere 'unwitting involvement'. The next transition of crime disruption strategies may focus on businesses used to facilitate fund transfers and asset purchases during all phases of criminal activity.
Also:
Guilty verdict 'a chill' for MPs, Sunday Star-Times, 8 June 2014 - Former National Party President Michelle Boag said by long-standing convention political candidates weren't expected to probe closely the anonymity of donations. However, Justice Wylie's ruling effectively said that John Banks should have probed it.
R v John Archibald Banks, Reasons for verdict of Wylie J, 5 June 2014 - The guilty decision resulted from Dotcom donations claimed as anonymous. The judgment also addressed when "wilful blindness" is sufficient to meet the test of "knowledge". In relation to a SkyCity donation also claimed as anonymous there was insufficient evidence in the circumstances that Mr Banks' lack of knowledge was wilful blindness.
Bring lawyers under AML laws, LawTalk, 23 May 2014 - The Australian Bankers Association says that "money laundering/terrorist financing incidents commonly involve a gatekeeper (solicitor, accountant), a high value goods dealer or a real estate industry person/entity". They consider "it is vital that tranche 2 is implemented [to bring those professions in line with international norms, and] to close the current gap in the legislation" and that lack of implementation of tranche 2 represents a "high jurisdictional risk" to Australia. Tranche 2 has also not yet been implemented in New Zealand.
New law to target "corrupt lawyers" who help criminals, Legal Futures (UK), 4 June 2014 - Minister Karen Bradley says the new offence of participation in an organised crime group "sends out a clear message to [corrupt lawyers, accountants and other professionals] - if you are helping to oil the wheels of organised crime, you will be prosecuted and face being jailed."
Lawyers' ethics plugs leaky legislation Ron Pol, LawTalk 28 April 2014
Lawyers' ethical rules may sometimes be more effective than specialist AML/CFT legislation. But accounting and real estate professionals may not fare so well.
Operating trust accounts Jeremy Kennerley, NZLS Financial Assurance Manager, LawTalk 11 April 2014
Handling of cash deposits; Law Society suggests placing the onus on clients to bank large or frequent cash deposits (and mentions obligations to report suspicious transactions).
Also Letter to editor (and NZLS Response) Law Society advice on operating trust accounts, Ashley Balls, Law Talk, 9 May 2014 (concern that 'over-simplified' message about cash-handling may not fully explain obligation to report suspicious transactions or risk facilitating money laundering; Law Society clarifies obligations to report suspicious transactions). Also see Beyond cash filled briefcases.
Property at risk from money launderers Matt Nippert, Sunday Star-Times, 16 Feb 2014
New regulations tightening money laundering regulations for banks risk driving black money into real estate.
Money laundering and real estate - part 2 Ron Pol & Ashley Balls, Real Estate Authority Newsletter, Feb 2014
Money laundering risks faced by real estate agents and practical ways to cut risk.
'Exemption' from new laws increases licensees' risks Ron Pol & Ashley Balls, Real Estate Authority Newsletter, Nov 2013
Why real estate has become more attractive to criminals, exposing agents to financial and reputational risks.
Why real estate has become more attractive to criminals, exposing agents to financial and reputational risks.
Stop criminals misusing real estate services Ron Pol & Ashley Balls, Real Estate Magazine, Aug-Sep 2013
New laws have made legal services and Real estate has become more attractive to criminal activity, but there are pragmatic ways to protect your business.
Stop criminals misusing legal services & Mitigate risks for business advantage Ron Pol & Ashley Balls, LawTalk, 2 & 16 Aug 2013
New laws have made legal services and trust accounts more attractive to criminal activity, and more difficult for lawyers to avoid being implicated. But there are pragmatic ways to protect your business.
Letters to editor (Certifying documents & AML regime), LawTalk, 13 Sep 2013
John McLean asks lawyers to take care certifying documents. John Hart suggests some errors and opines that articles on this topic overstate the current potential compliance obligations for lawyers.
Response: Lawyers choose to mitigate AML risks Ron Pol & Ashley Balls, LawTalk 27 Sep 2013 (Address concerns. Simple facts, neither under- or over-stated: The Act already affects lawyers' practices; Firms can take simple measures to cut business risks; and the Act is a reminder of lawyers' existing obligations to report suspicious transactions. Equally matter of fact: Firms can choose to do more than strictly required, to protect their business; confirm they're meeting their existing obligations, as a basic compliance check; or apply a 'strategy' of hope, that what they're not looking for isn't happening).
Is your PI cover compromised? Ashley Balls, LawTalk, 5 July 2013
Any law firms with operations not exempt under the new laws should check their professional indemnity insurance cover.
New Zealand takes money launderers to the cleaners Rod Vaughn & Ashley Balls, Law News, 28 June 2013
Long overdue legislation to combat money laundering in New Zealand and meet our international obligations will take effect on 30 June. It has been in the pipeline since 2009 and is designed to wipe out a $1.5billion a year business that has tarnished New Zealand's financial reputation.
Also: Letter to Editor: Trust Issues John Hart, Barrister, Law News, 12 July 2013 Reply: Clarifying Anti-money laundering compliance Ashley Balls & Ron Pol, Law News, 19 July 2013
New obligations affect lawyers and accountants Ron Pol, LawTalk, 21 June 2013
Many law firms and accounting practices believe they will be temporarily exempt from new anti-money laundering legislation which comes into force on 30 June 2013, but some firms will be affected before planned removal of the exemption possibly as early as 2014.
Trust compliance in the face of new AML CFT laws Vicki Ammundsen, Law News, 6 June 2013
An exemption in the regulations may have lulled many lawyers into a false sense of complacency. Does that mean that lawyers are off the hook then for AML/CFT purposes? Unfortunately, for many lawyers the answer is an unhelpful “probably not”. To simply assume that because you are a lawyer you are exempt from the requirements of the regime is to miss the point.
The case for electronic verification Tyler McNamee, LawTalk, 24 May 2013
A well designed electronic verification system is an opportunity to increase efficiency and customer engagement while reliably alleviating money laundering and terrorist financing risk. EV allows a potential customer to seamlessly and instantly verify themselves.
AML CFT feature Elliot Sim, LawTalk, 1 Feb 2013
Anti ‘dirty’ money legislation – Implications for lawyers and law firms – Work on phase two will begin next year – New Police IT system – Information for lawyers. t1 t2
New laws have made legal services and Real estate has become more attractive to criminal activity, but there are pragmatic ways to protect your business.
Stop criminals misusing legal services & Mitigate risks for business advantage Ron Pol & Ashley Balls, LawTalk, 2 & 16 Aug 2013
New laws have made legal services and trust accounts more attractive to criminal activity, and more difficult for lawyers to avoid being implicated. But there are pragmatic ways to protect your business.
Letters to editor (Certifying documents & AML regime), LawTalk, 13 Sep 2013
John McLean asks lawyers to take care certifying documents. John Hart suggests some errors and opines that articles on this topic overstate the current potential compliance obligations for lawyers.
Response: Lawyers choose to mitigate AML risks Ron Pol & Ashley Balls, LawTalk 27 Sep 2013 (Address concerns. Simple facts, neither under- or over-stated: The Act already affects lawyers' practices; Firms can take simple measures to cut business risks; and the Act is a reminder of lawyers' existing obligations to report suspicious transactions. Equally matter of fact: Firms can choose to do more than strictly required, to protect their business; confirm they're meeting their existing obligations, as a basic compliance check; or apply a 'strategy' of hope, that what they're not looking for isn't happening).
Is your PI cover compromised? Ashley Balls, LawTalk, 5 July 2013
Any law firms with operations not exempt under the new laws should check their professional indemnity insurance cover.
New Zealand takes money launderers to the cleaners Rod Vaughn & Ashley Balls, Law News, 28 June 2013
Long overdue legislation to combat money laundering in New Zealand and meet our international obligations will take effect on 30 June. It has been in the pipeline since 2009 and is designed to wipe out a $1.5billion a year business that has tarnished New Zealand's financial reputation.
Also: Letter to Editor: Trust Issues John Hart, Barrister, Law News, 12 July 2013 Reply: Clarifying Anti-money laundering compliance Ashley Balls & Ron Pol, Law News, 19 July 2013
New obligations affect lawyers and accountants Ron Pol, LawTalk, 21 June 2013
Many law firms and accounting practices believe they will be temporarily exempt from new anti-money laundering legislation which comes into force on 30 June 2013, but some firms will be affected before planned removal of the exemption possibly as early as 2014.
Trust compliance in the face of new AML CFT laws Vicki Ammundsen, Law News, 6 June 2013
An exemption in the regulations may have lulled many lawyers into a false sense of complacency. Does that mean that lawyers are off the hook then for AML/CFT purposes? Unfortunately, for many lawyers the answer is an unhelpful “probably not”. To simply assume that because you are a lawyer you are exempt from the requirements of the regime is to miss the point.
The case for electronic verification Tyler McNamee, LawTalk, 24 May 2013
A well designed electronic verification system is an opportunity to increase efficiency and customer engagement while reliably alleviating money laundering and terrorist financing risk. EV allows a potential customer to seamlessly and instantly verify themselves.
AML CFT feature Elliot Sim, LawTalk, 1 Feb 2013
Anti ‘dirty’ money legislation – Implications for lawyers and law firms – Work on phase two will begin next year – New Police IT system – Information for lawyers. t1 t2