TJA Reacts: New Zealand’s Financial Secrecy Rating “Not Good Enough”

New Zealand has been rated 53 out of 142 countries in the latest Financial Secrecy Index report produced by global organisation Tax Justice Network which examines countries’ laws around financial transparency, among other things. Glen Barclay, Chair of Tax Justice Aotearoa (TJA) says that the rating is not good enough, with our ranking falling from the 57th spot two years ago:

“It is so disappointing to see that New Zealand has gone backwards in the overall secrecy of our financial system. In part, this is because there is no law that requires a trust register other than charitable trusts and similar arrangements such as incorporated societies. We also rate relatively poorly in anti-money laundering and conformity with international standards,” says Glenn Barclay.

TJA says the recently announced moves by the Government to include information on the beneficial ownership of companies and limited partnerships on the appropriate registers is a positive step in the right direction. Still, without a specific register for trusts, we will have no idea of the extent of their compliance.

“While we remain disappointed about our ranking in the Financial Secrecy Index, we welcome the Report as providing a much-needed evaluation of financial transparency in New Zealand,” says Glenn Barclay. “The report identifies flaws in our system, but it also highlights a path forward, how we can do better. It’s critical that New Zealand establishes a trust register. This would ensure that agencies, and the general public, know what people gain financially from and benefit from their involvement in trusts. A register of trusts should become part of the Government’s recently announced proposals for rules on beneficial ownership.”

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