24 Jun 2020
The Financial Markets Authority is taking a company to court over nearly $50 million worth of transactions that it alleges breached the anti-money laundering act.
The authority has filed proceedings in the High Court at Auckland against CLSA Premium New Zealand Ltd, formerly KVB Kunlun New Zealand Ltd.
CLSAP NZ – which provides financial services including broking, financial advice and derivatives – is the New Zealand subsidiary of Hong Kong company CLSA Premium Limited.
CLSAP NZ failed on numerous occasions to do sufficient customer due diligence, to end business relationships, to report suspicious transactions, and to keep records in line with the Anti-Money Laundering and Countering Financing of Terrorism Act, the FMA claimed.
The authority said the alleged breaches represented CLSAP NZ’s general approach to compliance with its obligations under the act over the time that they happened.
The transactions, between April 2015 and November 2018, involved nearly $50 million.
The FMA was seeking a pecuniary penalty against CLSAP NZ and costs. The maximum penalty for the alleged breaches is $2 million for a company.
By Melanie Carroll, Stuff, 23 June 2020
Read more at Stuff
RiskScreen: Eliminating Financial Crime with Smart Technology
Advance your CPD minutes for this content, by signing up and using the CPD WalletFREE CPD Wallet