New Zealand AML/CFT Reforms 2026: What the Amendment Acts Change

New Zealand has been reworking its anti-money laundering and countering financing of terrorism (AML/CFT) regime, and in May 2026 two Amendment Acts completed the latest stage. One takes effect from 19 May 2026 and the other from 1 July 2026, when a single regulator takes over supervision. This guide summarises the changes using law firm summaries from DLA Piper and MinterEllisonRuddWatts. Neither source singles out accountants, so check whether your activities make you a reporting entity and read the legislation and the Department of Internal Affairs (DIA) guidance for the exact rules.

The two Acts and their dates

DLA Piper reports that both Acts received Royal Assent on 18 May 2026. The AML/CFT Amendment Act commenced on 19 May 2026. The Supervisor, Levy, and Other Matters Amendment Act commences on 1 July 2026.

Changes in the AML/CFT Amendment Act

• Definitions. New or clarified definitions include beneficial owner, trust and company service provider (which excludes certain professionals), money or value transfer service and life insurer.
• Activities of other reporting entities. A reporting entity performing another type of reporting entity's activities in the ordinary course of business is treated as performing those activities for AML/CFT purposes.
• Trusts. For enhanced customer due diligence on trusts, there is no need to verify source of funds or wealth where doing so would not mitigate risks identified by standard customer due diligence.
• Politically exposed persons. The determination of whether a customer or beneficial owner is a foreign PEP can follow a risk-based approach. MinterEllison describes this as replacing the "reasonable steps" standard.
• Records and risk assessments. There are stronger record-keeping and risk assessment requirements. Risk assessments must incorporate the DIA's and the Financial Intelligence Unit's own assessments, and records must be produced as soon as possible if urgent, by the date in the notice, or within 20 working days if no date is given.
• Cross-border reporting. It extends beyond cash to include stored value instruments.
• Wire transfers. Ordering institutions cannot order international wire transfers that lack the required originator and beneficiary information.
• Supervisor assistance. Supervisors have greater powers to assist overseas counterparts and to recover costs and penalties.

Changes from 1 July 2026

• One supervisor. The DIA becomes the sole AML/CFT supervisor, replacing the three-supervisor model of the Reserve Bank, the Financial Markets Authority and the DIA.
• Rule-making. The DIA gains powers to make codes of practice, rules, notices and exemption notices, subject to consultation, which reduces reliance on regulations.
• Investigation powers. The DIA can require attendance at meetings, production of or access to records, and entry to dwellinghouses with consent or under warrant. People must be told they may have a lawyer present and have the right not to self-incriminate.
• Civil liability. The definition now covers failures to comply with suspicious activity reporting, risk assessment, AML/CFT programme and annual report requirements.
• Censures. Formal warnings are replaced by censures, with 10 working days' notice and a right of appeal to the District Court.
• Levy and strategy. An annual AML/CFT levy funds a national strategy and work programme, with details to be set in regulations. Courts must apply pecuniary penalties first to cover supervisors' costs of bringing proceedings.

What is still to come

DLA Piper says the DIA will update its guidance to reflect the changes that are already in force, and that a further omnibus bill, expected to provide more regulatory relief, is expected to be introduced in the current Government term. The levy details were still awaited at the time of the May summaries, so check the DIA website for the current position.

What reporting entities should do

1. Confirm your status. Work out whether your services make you a reporting entity, and which definition applies after the changes.
2. Update your risk assessment. Build in the DIA and Financial Intelligence Unit assessments as the Act now requires. Our guide to the firm-wide AML risk assessment covers the general approach.
3. Review PEP and trust procedures. The risk-based PEP test and the trust verification change both affect your forms. See our guide to politically exposed persons.
4. Check beneficial ownership processes. The definition has been clarified, so test your procedures against it. Our guide to ultimate beneficial ownership explains the principles.
5. Be ready for the DIA. Make sure records can be produced quickly and your annual report and programme are current.

Frequently asked questions

When did the Acts come into force?

The AML/CFT Amendment Act commenced on 19 May 2026 and the Supervisor, Levy, and Other Matters Amendment Act commences on 1 July 2026.

Who supervises AML/CFT in New Zealand from 1 July 2026?

The Department of Internal Affairs, as sole supervisor.

Do the Acts mention accountants?

The summaries we used do not specifically address accountants. Check the legislation and DIA guidance for how your services are treated.

How does the PEP rule change?

PEP identification becomes risk-based, according to the level of risk involved, instead of relying on the reasonable steps standard.

Next steps

If you work with New Zealand clients or entities, put the 1 July 2026 supervisor change and the new PEP and record rules on your review list. This article is general information and not legal advice. For wider training, explore Learnsignal's CPD courses.