NSW has a new electoral commissioner - and appropriately enough, given the recent political donations scandals engulfing the state Liberal party, he comes armed with anti-money laundering experience.

John Schmidt is a former chief executive of the Australian Transaction Reports and Analysis Centre (AUSTRAC), the federal agency responsible for fighting money laundering and terrorism financing.

New sheriff comes armed: NSW electoral commissioner John Schmidt. Credit:Louie Douvis

Mr Schmidt, who starts a seven year term on August 8, will take his place on a three member electoral commission panel with investigative powers to regulate political donations in NSW.

The panel's chair, Keith Mason, announced in March the commission was withholding $4.4 million in public funding from the NSW Liberal party until it declares who donated $693,000 to it via a fundraising body, the Free Enterprise Foundation before the 2011 state election.