New Zealand updates AML rules to support reusable digital ID

New Zealand is opening the door to wider adoption of accredited digital identity credentials and biometric verification services with a major overhaul of its anti-money laundering (AML) rules taking effect on July 1.

The AML Identity Verification Code of Practice 2026 (IVCOP 2026) represents a significant shift toward reusable digital identity and accredited electronic verification services.

The refreshed Identity Verification Code of Practice is the first update to the framework since 2013. The new policy establishes a legal “safe harbor” for businesses and is expected to accelerate the market adoption of accredited digital services and biometrics. For example, a verified RealMe identity – the government-backed IDV service – can be used as a single electronic source of identity.

From July, New Zealanders will be able to use accredited digital credentials for services such as banking, property transactions and legal verification both online and in person.

“The AML regime has become too slow, too repetitive, and too frustrating for ordinary New Zealanders and the businesses serving them,” says Nicole McKee, Associate Justice Minister.  “This refreshed Code is an early example of our improvements to the AML regime – with clearer guidance, more consistency, and a more practical approach for businesses that have been crying out for reform.”

For identity tech providers, the 2026 Code removes major barriers. It replaces rigid compliance rules with a flexible, risk-proportionate approach. “The new Code makes it easier for businesses to check Kiwis are who they say they are in ways that are safe, sensible, and proportionate to risk,” says Brooke van Velden, Internal Affairs Minister.

“In particular, it will make it easier for elderly and disabled New Zealanders to use SuperGold Cards and Total Mobility Cards as secondary ID.”

The reforms are also intended to reduce compliance burdens for lower-risk customers. The code also introduces standard exceptions for citizens abroad and allows businesses to use more overseas sources of government identity data. The reform is aimed at directly targeting financial crime instead of burdening ordinary citizens.

Further AML reforms are already planned, with an Omnibus Bill expected later this parliamentary term to reduce additional compliance requirements.

New provisions will also commence in July 2027, especially in relation to receiving certified copies of identity documents.

Article Topics

AML  |  financial services  |  identity verification  |  New Zealand  |  reusable digital ID