New Zealand: A Current Analysis of the New Zealand Serious Fraud Office
| Date | 01 April 1998 |
| DOI | https://doi.org/10.1108/eb025885 |
| Pages | 195-199 |
| Published date | 01 April 1998 |
| Author | Shaista Shameem |
| Subject Matter | Accounting & finance |
Journal of Financial Crime
—
Vol.
6
No.
2
—
International
New Zealand: A Current Analysis of the New
Zealand Serious Fraud Office
Shaista Shameem
BACKGROUND
The New Zealand Serious Fraud Office (NZSFO)
was set up in 1989 in response to issues arising out
of the 1980s financial crisis, in particular the share-
market crash of 1987. In the short period of about
a year the total sum thought to be involved in
corporate fraud schemes in New Zealand had
increased dramatically, from NZ$10m-15m before
1988 to NZ$50m-70m in 1989.1 Consequently,
the Department of Justice proposed setting up a
specialist institution and legal mechanisms for the
investigation of serious or complex fraud.
Modelled on the UK SFO, the new structure
was designed for fraud investigation and prosecu-
tion separate from, but in consultation with, other
government investigative agencies such as the
police. The UK model, fostering a unified or inte-
grated prosecution unit, was thought to be appro-
priate for New Zealand.2 The rigorous powers set
out in the Bill mirrored powers provided to the
UK SFO under Britain's Criminal Justice Act
1987,
with some modifications to suit the New
Zealand situation.3 The NZSFO Bill was intro-
duced to Parliament by the (Labour) Government
in 1989 and became law (the Serious Fraud Office
Act) in May 1990.
Page 193
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