Transaction monitoring: A strategic imperative for New Zealand banks

Transaction monitoring is a cornerstone of Anti‑Money Laundering (AML) compliance and financial crime prevention. As transaction volumes increase and criminal typologies evolve, New Zealand banks continue to face heightened regulatory scrutiny and growing operational pressure.

In this report, KPMG explores the current state of transaction monitoring across New Zealand’s banking sector, drawing on observations from recent regulatory activity and our work with major banks. We highlight key challenges limiting effectiveness today—and outline practical recommendations to help banks strengthen their monitoring frameworks and better respond to emerging risks.

Recent regulatory focus, including the Reserve Bank of New Zealand’s thematic review of transaction monitoring, has reinforced the need for banks to demonstrate that their frameworks are effective, risk‑aligned and future‑ready.

This report examines how banks can move beyond compliance‑driven monitoring toward a more strategic, intelligence‑led capability that supports stronger financial crime outcomes.

Transaction monitoring

A strategic imperative for New Zealand banks.

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How KPMG can help

Effective transaction monitoring depends on strong data lineage, clear ownership and advanced analytics. Together, these capabilities form a critical defence against financial crime—one that is increasingly strengthened by the use of AI and machine learning.

KPMG helps New Zealand banks enhance transaction monitoring by improving data quality, embedding advanced analytics and aligning monitoring frameworks to evolving AML and regulatory expectations. Our approach supports more accurate detection, reduced false positives and greater confidence in regulatory outcomes.

With deep financial crime expertise and innovative solutions, we work alongside clients to accelerate their transaction monitoring journey and build frameworks that are agile, intelligent and future‑ready.

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We hope you enjoyed this report and would be delighted to discuss its content and insights in further detail. Please get in touch if you have any questions or would like to schedule a conversation.