The National Party wants to simplify anti-money laundering (AML) requirements so people don't have to repeatedly go back and verify information that has already been verified, the party's commerce and consumer affairs spokesman Andrew Bayly says.
National on Friday released what it calls a 100-point plan to rebuild the economy. Listed at number 50 is; "Develop protocols to allow simplified verification to comply with anti-money laundering requirements."
Bayly told interest.co.nz he has had a working group of eight to 10 people looking into this for about 10 months comprising lawyers, accountants, "technical people," and bankers. The use of biometric authentication is in the mix, as potentially is the blockchain.
"Ideally we want to get to a stage where all we need to know is that Gareth has been verified and he's kosher," Bayly says.
"We've got so many people trying to do the same AML checks. And what we don't have is a basis across the sector to say that 'Gareth has been checked and you don't need to keep asking the same question.' Obviously as new things arise you ask them those questions, but you don't have to go back over history," says Bayly. "So that's the utopia."
He notes the likes of lawyers, accountants, bankers, financial advisers, real estate agents and stock brokers, all have to go through the same processes which is "a massive cost."
"So we want to try and simplify it," says Bayly.
He points to a trend towards the use of biometric data.
"Ringing up and saying to someone 'are you Gareth Vaughan, when did your mother die and what was her maiden name,' is one form of checking. The other much better form is biometric data. We've got to get a good biometric framework, so that's customer identity as it's called," Bayly says.
The second step is finding a system where the data can be shared.
"How do you set up a trust structure where multiple individuals or entities who've been accredited can access that data? People talk about blockchain technology so there's a possibility of doing blockchain," says Bayly.
He notes the Government's RealMe verified identity service that can be used to access government online services. But says others are also good at doing this, pointing to fintech Akahu, which has "a system where they can act as an intermediary."
"We're looking at what framework would you put in place and what protocols would you put around that?" Bayly says.
*This article was first published in our email for paying subscribers. See here for more details and how to subscribe.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.