Taking action to reduce money laundering and the financing of terrorism is important, not only because of the social harm caused by these illegal activities, but also because of the damage these illegal activities can do to the stability and reputation of a nation’s financial system. This article sets out the Reserve Bank of New Zealand’s role and responsibilities with regard to the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. It briefly explains the regulatory and supervisory framework established by the Act, discusses the Reserve Bank’s Risk-Based Approach in this context and outlines some of the major areas of work to be undertaken in order to develop and implement the Reserve Bank’s supervisory framework.