web analytics

Follow the money

Written By: - Date published: 8:21 am, October 30th, 2016 - 30 comments
Categories: capitalism, Economy, tax - Tags:

shush money

What do auctioneers, bullion dealers, precious metal and stone dealers, motor vehicle and boat dealers, antique and art dealers, second hand dealers and pawnbrokers all have in common? They exchange things for lots and lots of cash, and they aren’t banks.

This makes them particularly attractive to drug importers and other organised crime syndicates, tax evaders, and others for whom we need to Follow The Money.

So before Christmas, we are likely to see introduced into the House, Phase 2 of the Anti-Money Laundering and Countering Financing of Terrorism Act (Act).

Phase 1 of the Act came into effect in 2013 and requires organisations such as banks and casinos to conduct customer due diligence. A number of people may through their own personal experiences with their bank, be familiar with the requirements which are to:

  •  Obtain and verify the identity of customers
  • In some circumstances, verify sources of funds
  • Conduct ongoing customer due diligence and monitor account activity
  • Identify and report any suspicious activity

Phase 2 involves extending the Act to cover other professions such as lawyers, accountants and real estate agents. We love them all.

The Government aims to introduce a Bill to Parliament before Christmas, with the adventurous aim of getting it into law by July 2017.

The impact of the coming changes means that lawyers, accountants, and real estate agents will be required by law to:

  • conduct a higher level of due diligence on clients including obtaining identification in a wider range of circumstances than we do currently
  • verify the source of client funds
  • report any transactions that may be suspicious to the Police
  • In addition, lawyers will be subject to the supervision, monitoring and enforcement provisions of the Act. Who will regulate the legal profession is yet to be announced.

Personally, I’d like to see a whole section of the act about regulating trusts who shift big chunks of capital around from one property to the next. Maybe to capture more in the Proceeds of Crime Act.

Would be good to hear from lawyers who are in the tax structuring field on this, and on whether it integrates with the Australian legal framework.

Follow The Money.

30 comments on “Follow the money ”

    • Ad 1.1

      I was tempted to put in that link myself. He was my favorite character in that show.

      In one of Bruce Jesson’s earlier books he mapped out how closely a set of fifty companies and shareholder families were very closely related. It may be more diffuse now, but the line still identifies those who hold long term power in New Zealand:

      Follow the money.

      • Anne 1.1.1

        Follow the money said Deep Throat. So they did. And it brought down an American president. This Nat government will do everything to avoid following the money. Based on past experience, it will fiddle around with legislation but the end result will be way short of satisfactory. Why? Well, we know why. Too many of their big donors are – or have been in the past – mixed up in shady deals and tax evasion.

        Quite simple really.

  1. BM 2

    How would a real estate agent go about meeting all these obligations?

    • Draco T Bastard 2.1

      The Market will provide?

      • BM 2.1.1

        Should it really be up to a real estate agent to make the call on who’s dodgy or not?

        I can’t really see how that would work?

        Hey Chinese guy you look a bit suss, so we’re going to check you out, which will cost you an extra $5000.
        White person, no chance you’d be breaking the law, no extra costs for you.

        Obviously for fairness and arse covering every person who buys a house is going to have their finances and background raked through, which will no doubt add extra costs to the purchasing of a property.

        Can’t see that going down very well with people.

        • Draco T Bastard 2.1.1.1

          Obviously for fairness and arse covering every person who buys a house is going to have their finances and background raked through, which will no doubt add extra costs to the purchasing of a property.

          Probably but it will decrease costs for society and thus the house buyer will actually be better off.

          Of course, banning foreign ownership will seriously decrease those costs as well.

        • AmaKiwi 2.1.1.2

          “Should it really be up to a real estate agent to make the call on who’s dodgy or not?

          Real Estate agents won’t have to. They simply won’t take cash. They will require payment through a bank. The bank has already done the investigating because that’s part of what they are required to do.

    • One Anonymous Bloke 2.2

      The right wing ones will have to wait for someone smart to figure that out for them.

  2. Draco T Bastard 3

    This makes them particularly attractive to drug importers and other organised crime syndicates, tax evaders, and others for whom we need to Follow The Money.

    Cashless

    Makes it real easy to do just that as well as helping to ensure peoples privacy.

    Once every country in the world does it crime based around money will pretty much be eliminated.

    • ropata 3.1

      The problem isn’t paper currency it’s the private banks and lack of regulation.

      There are exploitable bugs in any system, paper or electronic or groats.

      • Draco T Bastard 3.1.1

        There are exploitable bugs in any system, paper or electronic or groats.

        True so the one to choose would be the one with the least bugs and greatest advantages. IMO, that would be electronic.

        • One Two 3.1.1.1

          It’s possible you may have thought superficially before arriving at a conclusion…

          “Greatest Advantages”…

          Yes, quite!

          • Draco T Bastard 3.1.1.1.1

            It’s possible you may have thought superficially before arriving at a conclusion…

            Nope.

            Cash lends itself to criminality while an electronic system would help eliminate it.

  3. Ralf Crown 4

    The Nazis and Hitler invented the system, Stalin, Mussolini, Kim Jong-Il, Qaddafi, and a few more used it and loved it, now coming to you in New Zealand.

    • Ad 4.1

      What are you on about?

      • ropata 4.1.1

        he’s implying that monitoring fraudulent activity == totalitarianism

        as if we haven’t already seen several big-brother-style abuses by our wall st. bankster in chief and his pals in the GCSB

  4. Henry Filth 5

    Let’s hope that the compliance burden of this bout of bureaucracy will involve better designed systems than the last one.

Recent Comments

Recent Posts

  • Tokelau Language Week reminds us to stay united and strong
    Staying strong in the face of challenges and being true to our heritage and languages are key to preserving our cultural identity and wellbeing, is the focus of the 2020 Tokelau Language Week. Minister for Pacific Peoples, Aupito William Sio, says this year’s theme, ‘Apoapo tau foe, i nā tāfea ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • NZ announces a third P-3 deployment in support of UN sanctions
    The Government has deployed a Royal New Zealand Air Force P-3K2 Orion (P-3) maritime patrol aircraft to support the implementation of United Nations Security Council (UNSC) resolutions imposing sanctions against North Korea, announced Minister of Foreign Affairs Winston Peters and Minister of Defence Ron Mark. “New Zealand has long supported ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Pacific trade and development agreement a reality
    Pacific regional trade and development agreement PACER Plus will enter into force in 60 days now that the required eight countries have ratified it. Trade and Export Growth Minister David Parker welcomed the announcement that the Cook Islands is the eighth nation to ratify this landmark agreement. “The agreement represents ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Securing a pipeline of teachers
    The Government is changing its approach to teacher recruitment as COVID-19 travel restrictions continue, by boosting a range of initiatives to get more Kiwis into teaching. “When we came into Government, we were faced with a teacher supply crisis,” Education Minister Chris Hipkins said. “Over the past three years, we ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Border exceptions for a small number of international students with visas
    The Government has established a new category that will allow 250 international PhD and postgraduate students to enter New Zealand and continue their studies, in the latest set of border exceptions. “The health, safety and wellbeing of people in New Zealand remains the Government’s top priority. Tight border restrictions remain ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • First COVID-19 vaccine purchase agreement signed
    The Government has signed an agreement to purchase 1.5 million COVID-19 vaccines – enough for 750,000 people – from Pfizer and BioNTech, subject to the vaccine successfully completing all clinical trials and passing regulatory approvals in New Zealand, say Research, Science and Innovation Minister Megan Woods and Health Minister Chris Hipkins. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • International statement – End-to-end encryption and public safety
    We, the undersigned, support strong encryption, which plays a crucial role in protecting personal data, privacy, intellectual property, trade secrets and cyber security.  It also serves a vital purpose in repressive states to protect journalists, human rights defenders and other vulnerable people, as stated in the 2017 resolution of the ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ministry of Defence Biodefence Assessment released
    The Ministry of Defence has today released a Defence Assessment examining Defence’s role across the spectrum of biological hazards and threats facing New Zealand. Biodefence: Preparing for a New Era of Biological Hazards and Threats looks at how the NZDF supports other agencies’ biodefence activities, and considers the context of ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020
    New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020 Hon David Parker’s response following Thomas Piketty and Esther Duflo. Good morning, good afternoon, and good evening, wherever in the world you might be. I first acknowledge the excellent thought provoking speeches of Thomas Piketty and Esther ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Kaipara Moana restoration takes next step
    A Memorandum of Understanding has been signed today at Waihāua Marae between the Crown, local iwi and councils to protect, restore and enhance the mauri of Kaipara Moana in Northland. Environment Minister David Parker signed the document on behalf of the Crown along with representatives from Ngā Maunga Whakahī, Ngāti ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand and Uruguay unite on reducing livestock production emissions
    Agriculture Minister Damien O’Connor and Uruguayan Minister of Livestock, Agriculture and Fisheries Carlos María Uriarte have welcomed the launch of a three-year project that will underpin sustainable livestock production in Uruguay, Argentina, and Costa Rica.  The project called ‘Innovation for pasture management’ is led by Uruguay’s National Institute of Agricultural ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • 3100 jobs created through marae upgrades
    Hundreds of marae throughout the country will be upgraded through investments from the Provincial Growth Fund’s refocused post COVID-19 funding to create jobs and put money into the pockets of local tradespeople and businesses, Regional Economic Development Minister Shane Jones and Māori Development Minister Nanaia Mahuta have announced. “A total ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Health volunteers recognised in annual awards
    Health Minister Chris Hipkins has announced 9 teams and 14 individuals are the recipients of this year’s Minister of Health Volunteer Awards.  “The health volunteer awards celebrate and recognise the thousands of dedicated health sector volunteers who give many hours of their time to help other New Zealanders,” Mr Hipkins ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community COVID-19 Fund supports Pacific recovery
    The Minister for Pacific Peoples, Aupito William Sio says a total of 264 groups and individuals have successfully applied for the Pacific Aotearoa Community COVID-19 Recovery Fund, that will support Pacific communities drive their own COVID-19 recovery strategies, initiatives, and actions. “I am keen to see this Fund support Pacific ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community benefits from Māori apprenticeships
    Up to 50 Māori apprentices in Wellington will receive paid training to build houses for their local communities, thanks to a $2.75 million investment from the Māori Trades and Training Fund, announced Employment Minister Willie Jackson today. “This funding will enable Ngāti Toa Rangatira Incorporated to provide its Ngā Kaimahi ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Training fund supports Māori jobseekers
    Rapidly growing sectors will benefit from a $990,000 Māori Trades and Training Fund investment which will see Wellington jobseekers supported into work, announced Employment Minister Willie Jackson today. “This funding will enable Sapphire Consultants Ltd. to help up to 45 Māori jobseekers into paid training initiatives over two years through ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ruakura Inland Port development vital infrastructure for Waikato
    The Government is investing $40 million to develop an inland port at Ruakura which will become a freight super-hub and a future business, research and residential development for the Waikato, Urban Development and Transport Minister Phil Twyford, and Māori Development Minister Nanaia Mahuta announced today. The funding has been has ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Appointments made to Defence Expert Review Group
    Defence Minister Ron Mark announced today the establishment of an Expert Review Group to review a number of aspects of the New Zealand Defence Force’s (NZDF) structure, information management and record-keeping processes.  The Expert Review Group’s work arises out of the first recommendation from the Report of the Government’s Inquiry ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • No active community cases of COVID-19
    There are no active community cases of COVID-19 remaining in the country after the last people from the recent outbreak have recovered from the virus, Health Minister Chris Hipkins said today. “This is a big milestone. New Zealanders have once again through their collective actions squashed the virus. The systems ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Clean energy upgrade for more public buildings
    More public buildings will be supported by the Government to upgrade to run on clean energy, the Minister for Climate Change James Shaw announced today. Minister Shaw announced that Lincoln and Auckland universities will receive support through the Clean-Powered Public Service Fund to replace fossil fuel boilers. Southern, Taranaki, and ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Schools back donations scheme for the second year
    More schools have opted in to the donations scheme for 2021, compared to 2020 when the scheme was introduced. “The families of more than 447,000 students will be better off next year, with 94% of eligible schools and kura opting into the scheme,” Education Minister Chris Hipkins said. “This is ...
    BeehiveBy beehive.govt.nz
    3 weeks ago