Change in law paves way for lower remittance costs

“The Ministry of Pacific Island Affairs has led work with the Reserve Bank and the Ministry of Justice with the goal of reducing transaction costs to between five and seven per cent by next year. We want a more competitive remittance market between New Zealand and the Pacific region, greater transparency, wider use of formal channels, and better informed consumers.”

Helen Clark, New Zealand's Prime Minister

On 22 September 2008, New Zealand's Prime Minister, Helen Clark and Pacific Island Affairs Minister, Luamanuvao Winnie Laban announced that the cabinet had sanctioned new guidelines in the Financial Transactions Reporting Act. These new guidelines are expected to reduce the costs of sending money across New Zealand and Pacific region. According to the new guidelines, it is not necessary to ascertain the identity of the second cardholder by financial institutions. However, some restrictions have been maintained to prohibit money laundering or terrorist financing activities.

Helen Clark said “The Ministry of Pacific Island Affairs has led work with the Reserve Bank and the Ministry of Justice with the goal of reducing transaction costs to between five and seven per cent by next year. We want a more competitive remittance market between New Zealand and the Pacific region, greater transparency, wider use of formal channels, and better informed consumers.”