At least one expert says the Government's efforts to stop the company registration regime being abused by unscrupulous foreigners is a good first step.
Last year, the New Zealand incorporated firm SP Trading was involved in chartering a plane used for weapons trafficking in defiance of UN sanctions.
A subsequent Companies Office review removed 1800 firms, while the Reserve Bank expressed concern some 1000 overseas financial institutions have registered here in the last three years.
The Government is now proposing to require firms to have a locally based director or agent, provide personal birth information, a compulsory company IRD number, and beef up the registrar's investigation functions.
New Zealand will remain one of the easiest places on earth to set up a firm, and Ernst & Young partner Jo Doolan says it's a good step forward and long overdue.
She says too many people have been allowed to register companies when there has been no due diligence on checking behind who they are and what they are doing with them.
Ms Doolan says ultimately there needs to be checking of the credibility of that director or agent so they can be held responsible if something goes wrong.
She says there's provision to disallow the registration of that director or ban that agency if they are non compliant and for example don't file accounts on time.