WELLINGTON - The Reserve Bank of New Zealand (RBNZ) on Monday welcomed the latest National Risk Assessment (NRA) which evaluates threats, sector vulnerabilities, and their impact on money laundering, terrorism financing, and proliferation financing risks in New Zealand.

This NRA, published by the Police's Financial Intelligence Unit, updates and describes the significant criminal behaviors generating illicit income that threaten New Zealand's financial system. It also assesses and identifies the vulnerabilities within the country's financial system that criminals are taking advantage of when they launder proceeds of crime.

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"An effective Anti-Money Laundering and Countering-Financing of Terrorism (AML/CFT) system enhances the economic well-being and prosperity for all New Zealanders by safeguarding the integrity of our financial system and keeping it resilient against crime," said RBNZ Manager AML/CFT Supervision Damian Henry.

The report highlights the primary criminal activities generating illicit funds that pose a risk to New Zealand's financial system, Henry said, adding it also examines the vulnerabilities that criminals exploit to launder proceeds of crime.

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The NRA serves as a crucial reminder for reporting entities to reassess and update their own risk assessments, he said, calling on all entities to review the report.

According to the assessment, the most significant threats stem from fraud-related crime, drug offenses, and transnational money laundering. As a result, the banking sector remains highly exposed to money laundering risks, along with any industry offering financial services that facilitate the movement of illicit funds into or out of New Zealand.

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The NRA is a vital tool in strengthening New Zealand's AML/CFT framework, "enabling direct responses and maximizing the benefits of security for both our financial sector and communities," Henry said.