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FMA formal warning for Craigs Investment Partners

05 May 2016

The Financial Markets Authority (FMA) says it has issued a formal warning to Craigs Investment Partners Ltd under section 80 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

Craigs has admitted that it breached the Act in that it failed to conduct adequate enhanced due diligence and/or failed to terminate its business relationship with a client when it had been unable to complete the required level of customer due diligence on that client.

Section 22 of the Act requires reporting entities to conduct enhanced due diligence on clients where the level of risk involved is such that this higher standard of customer due diligence should apply.

The FMA says that in its view there were deficiencies with Craig's AML/CFT compliance programme after the introduction of the Act on 30 June 2013 in that it did not contain a cohesive process for escalating, monitoring and managing AML/CFT issues and ensuring compliance with the AML/CFT compliance programme. It says Craigs had not maintained sufficient written records in relation to the due diligence process.

The FMA says it acknowledges that since 2014 Craigs has taken steps to significantly improve its AML/CFT compliance programme and has also introduced a range of initiatives which will reduce the chances of similar breaches occurring in the future.

Last updated on the 16th September 2019