All New Zealand banks are now required to comply with the new anti-money laundering regime, which came into force on 30 June.

Under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 all New Zealand banks have additional obligations to check customer identity and, in some cases, account activity.

“The new regime applies to all banks, and other financial institutions, and builds on existing customer identification processes,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“It will mainly affect people when they open bank accounts, or if they want someone else to have signing authority on their account. People will also notice changes in some cases when depositing cash over the counter and making international money transfers. Existing customers will also be asked to confirm their ID and contact details from time to time.”

The new law aims to make it harder to disguise the profits of crimes like drug and arms trafficking, fraud, robbery, and illegal prostitution and gambling. It will also help New Zealand to meet its international obligations and improve its financial reputation overseas.

“We all have a role to play here. Banks will be asking customers to provide more information about themselves. It’s important to bear in mind the bigger picture here.”

“Banks have invested heavily to make sure they are compliant with the new regime. Most have implemented the changes ahead of the deadline to help ensure a smooth transition to the new requirements,” Hope added.

Hope said there was a risk that in capping the amount of lending done over the 80 per cent threshold it could spark third tier lenders to emerge and lend money on an unsecured basis.

In response to legal action on bank fees announced today the New Zealand Bankers’ Association said it expected the case to be vigorously defended.

“Fees of this nature are usually avoidable. Customers concerned about their fees should talk to their bank to make sure they have the accounts and products that suit their needs,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“If people are looking for an easier way to resolve the issue they should talk to their bank. Looking at the Australian experience, the action has gone on for a very long time and remains unresolved.

“The New Zealand banking sector is very competitive and customers have a huge choice.

“Our banks communicate very clearly on fees, and the vast majority of customers don’t incur these kinds of fees.

“Banks work hard to attract and keep their customers, and will work with them to reduce their fees. This came through in Consumer NZ’s survey last year which found 92 per cent of bank customers were happy with their bank,” Hope said.

Be on guard against financial crime that targets seniors said the New Zealand Bankers’ Association today as Fraud Awareness Week 2013 was launched.

“Banks take all fraud very seriously, and fraudsters who prey on vulnerable people are particularly concerning,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“Banks have systems to help detect and prevent fraud. We also have guidelines that encourage our members to develop internal procedures to deal with possible financial abuse of older and disabled customers.”

“Everyone has a role to play in fighting fraud by being vigilant and reporting incidences of fraud.

“Reporting fraud raises public awareness and helps stop fraudsters in their tracks. Contact your bank as soon as possible if you think you’ve been taken in by a scam,” Hope said.

Scams can also be reported to Scamwatch here.

Scams that target seniors are the focus of this year’s Fraud Awareness Week campaign, which is co-ordinated by the Ministry of Business, Innovation and Employment’s Consumer Affairs team.

Banking safety tips to help protect against financial crime include:

Card safety:

• Guard your card. Treat it like cash. Don’t leave it lying around. Make sure you know
  where your card is at all times.
• Protect your PIN. Never tell anyone your PINs or passwords – not even the police, bank
  staff, friends or family.
• Cover up. When entering your PIN number at ATMs and EFTPOS terminals, shield the
  PIN pad with your other hand. Criminals may ‘skim’ your card details by attaching a
  device to the card reader, and then ‘shoulder surf’ or use hidden cameras to record your
  PIN.
• Check your statements. Advise your bank immediately of any unauthorised transactions.

When shopping and banking online:

• Logon to internet banking by typing in your bank’s full web address. Do not use links that
  appear to take you to your bank’s website.
• Check you have a secure connection, which is shown by a padlock symbol somewhere
  on the page, and that the website address starts with ‘https://’. The ‘s’ stands for ‘secure’.
• Avoid public computers and public Wi-Fi for internet banking, e.g. internet cafes, libraries
  or hotels.
• Protect your identity information and only provide it to trusted people and organisations.
  This includes your date of birth, address, driver’s licence number and passport details.
• Shop with trusted retailers. Before you provide personal information make sure they will
  protect that information.
• Keep your anti-virus and firewall software up to date.
• If you suspect you’ve been taken in by a scam, contact your bank immediately.

If you use your mobile phone for banking:

• Only download apps from trusted sources
• Keep device operating systems up to date, and update apps when prompted
• Use your phone’s password lock feature
• Shield your passwords from people around you
• Change your passwords periodically, and make sure they are not easily guessable
• If available, use anti-virus software
• Contact your bank immediately if you lose your phone.

The New Zealand Bankers’ Association today congratulated Diane Maxwell on her appointment as Retirement Commissioner.

“We have been working closely with Diane in her interim capacity and are pleased to see her confirmed in the permanent role of Retirement Commissioner,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“Diane’s banking and regulatory background will serve her well in this role. She also brings a strong commitment to financial literacy and valuable experience delivering programmes to communities.

“Financial literacy is about people making informed choices to improve their financial well-being. Improving New Zealanders’ financial literacy and education benefits individuals, communities and the broader economy.

“Diane’s appointment sends a clear signal of the importance that the government is placing on improving financial literacy. We welcome this renewed focus and look forward to working with the Commissioner and the Minister on this goal,” Hope said.

Kirk Hope was appointed the head of lobby group the Bankers’ Association last year, so you’d expect him to have a better grip on his finances than the average New Zealander.

Retirement Commissioner

“One relevant factor in this discussion is whether it’s justifiable for farms as businesses to be treated differently from other businesses that find themselves in financial difficulty. Any proposal for a special mediation service for farms would need to provide a good rationale for establishing a sector-specific service,” Kirk Hope said.