New Zealand is progressing legislation to expand the Serious Fraud Office’s (SFO) investigative powers, with a bill amending the Serious Fraud Office Act 1990 currently before Parliament’s Justice Select Committee. The bill passed its first reading on 30 April and the committee is due to report back by 31 August, following the close of public submissions on 8 June.
Expanded powers for digital and cloud-based evidence
The proposed amendments aim to strengthen the SFO’s ability to obtain digital and cloud-based material, reflecting the growing role of online platforms and offshore servers in serious fraud cases. The agency has highlighted that its investigations now involve millions of documents, with evidence often dispersed across third-party exchanges and cloud services. The SFO has argued that these volumes and technologies strain the tools it has used since its establishment more than three decades ago.
The bill would allow the SFO to seize relevant digital and cloud-based evidence more effectively, addressing obstacles that have hindered access to electronic material. It also confirms that police can use their usual powers under the Search and Surveillance Act 2012 when assisting the SFO to execute a warrant.
Changes to search warrant processes and scene control
Under the bill, the SFO would gain the ability to apply for search warrants orally, including by phone, in situations where time is short. The changes are intended to help investigators respond more quickly when urgent circumstances or pressure make standard application processes difficult.
The legislation would further empower the SFO to take control of its own search sites to ensure that affected parties cannot interfere with investigations. Justice Minister Paul Goldsmith, who introduced the bill, described the package as clearing obstacles to the SFO’s work rather than expanding its reach. He said the changes are designed to remove red tape, citing past difficulties in obtaining electronic evidence and applying for warrants under time pressure.
Evidence rules and broader fraud context
Beyond search powers, the bill would change how courts assess evidence obtained unlawfully in SFO cases. Judges would be able to apply the standard balancing test under the Evidence Act 2006, weighing the quality of the evidence, the seriousness of the offence, and whether urgency or safety considerations influenced how it was gathered.
The government says fraud costs New Zealand billions of dollars a year and that offending is growing in scale and complexity. The SFO, which handled NZ$174.5 million in prosecuted cases last year, has seen a rise in complaints as digital fraud spreads. The collapse of Auckland crypto exchange Dasset, where liquidators found around NZ$6.3 million in customer crypto unaccounted for after its 2023 liquidation, has underscored the challenges of accessing information when key individuals are offshore and out of contact.
SFO strategic priorities and corruption perceptions
The bill has drawn renewed attention as the SFO released its Statement of Intent for 2026 to 2030, which introduces a technology priority focused on virtual asset misuse, artificial intelligence and other emerging fraud methods. Director Karen Chang said the agency is designed for impact rather than volume.
The SFO has also highlighted New Zealand’s movement on Transparency International’s Corruption Perceptions Index, noting a slide from first equal in 2019 to fourth in 2025. It cited survey data showing that 10% of adults reported fraud or cybercrime in 2025, up from 8% in 2018, underscoring the growing prevalence of such offending as the legislative changes are considered.
