Lianne Dalziel

Labour's Commerce spokesperson Lianne Dalziel is warning against kneejerk reactions that are being proposed in the wake of concerns about self-certification requirements of company registration.

"I have heard some commentators suggest that proof of identity and address should have to be produced for every director of every company, when the concerns have actually been about people falsely supplying registered office details without the authority of the business concerned," Lianne Dalziel said.

"There is enormous risk of unintended consequences when such proposals are made without a thorough assessment of the real issues," she said.

"Those who wish to avoid the scrutiny of international intelligence and law enforcement agencies will continue to seek vehicles to mask their activities. As the world locks down the use of financial institutions as conduits for money laundering and financing terrorism through reporting requirements, then other methods will inevitably be used."

Lianne Dalziel said that it is timely for the Government to put such concerns on their reform agenda, but warns against proposing solutions that may do more harm than good.

"If the issue is the use of fraudulent Registered Offices, then why not require the business located at the Registered Office to certify its agreement to be the Registered Office.

"Another suggestion I have received on the Labour MP's blog Red Alert (link below) would be to require overseas companies registering in New Zealand to have a Registered Agent, who would be accountable for the bona fides of the company's principals.

"I am concerned that New Zealand's deserved reputation for ease of doing business could be undermined by the concerns that are legitimately being raised. That is why the Government should announce that it will review the situation with an aim of addressing those concerns without making good businesses take on unnecessary compliance costs."