The Government won't speed up anti-money laundering laws – because of the cost to lawyers and real estate agents.

A report by tax expert John Shewan, triggered by the Panama Papers, said the Government should get the new regime in place by the end of the year.

But Prime Minister John Key has rejected that, saying it would be too expensive for those industries.

But he says it is likely to happen before next year's election.

"It is a matter of making sure we get it right," Mr Key said.

"I think there will be quite a bit of screaming from those sectors about the amount of compliance, the amount of information they need to collect, the cost of all that and who is going to pay that cost."

"There is going to be significan compliance costs"

In 2013, laws to tackle money laundering and the financing of terrorism were passed and put extra reporting obligations on banks.

Since last year, Justice Minister Amy Adams has been looking to extend the regime to real estate agents, lawyers, and those dealing with high value goods.

In the wake of the leaked Panama Papers scandal, the Government has been promising to speed-up that legislation.

But Key this morning rejected Mr Shewan's advice that this be implemented by the end of the year.

"The industry hasn't seen it and there is going to be significant compliance cost – tens of millions of compliance costs," he said.

He insisted: "We are not shying away from it."

Yesterday, Mr Shewan also recommended an overhaul of disclosure requirements on foreign trusts and companies, including a declaration of who is behind the money.But he stopped short of a public register.

He said the current regime is inadequate and "not fit for purpose".