Big compliance problems exist for Small businesses.
Dr. Nicholas Gilmour is correct, AML obligations are overbearing for smaller NZ businesses who cannot easily swallow the costs. We believe because the obligations are so onerous, many reporting entities are choosing not deal with this thorn in the side. Solutions must be found that allow SMBs to effectively and cheaply comply with the legislation as it is these businesses that are most vulnerable to instances of criminal activity. The legislation may be necessary, not just to prevent crime, but also to ensure NZ remains a member of the global banking system. However, ultimately if it becomes too costly and burdensome then the AML legislation will only cover larger companies who have the economies of scale to handle it - we fear at this point the law becomes anti-competitive and a tool promoted by larger organisations to squeeze the little guys out.