Money remitters need to improve AML/CFT compliance, Internal Affairs says
Some money remitters are still not complying with their Anti-Money Laundering and Countering Financing of Terrorism Act 2009 obligations, the Department of Internal Affairs says.
It says Wellington-based Run Da International Ltd was issued with a formal warning in May 2019 for non-compliance under the AML/CFT Act.
The department says Run Da provides money remittance services to domestic and overseas-based customers.
"The department issued a formal warning to Run Da on 21 May 2019 for failing to conduct customer due diligence; failing to adequately monitor accounts and transactions; failing to keep records and failing to establish, implement or maintain an AML/CFT programme."
Internal Affairs says it has engaged with Run Da on numerous occasions to educate and encourage the business to comply with the Act.
"However, Run Da continued to have on going deficiencies in its AML/CFT compliance programme. It is not alleged that Run Da was involved in money laundering or the financing of terrorism."
“Money remitters provide an important service to customers who are looking for a cost-effective solution to transfer or receive money overseas," says AML Group Director Mike Stone.
"However, the money remittance sector poses a high risk for money laundering, it often utilises cash and enables money to be moved quickly between countries. It is therefore very important that money remitters conduct proper customer due diligence, monitor their customer’s transactions and report prescribed transactions to the NZ Police Financial Intelligence Unit."
28 formal warnings since 2013
The department says this is the seventh formal warning to be published as a summary.
Since the AML/CFT Act came into force on 30 June 2013, it says it has issued 28 formal warnings, either for failure to meet particular risk assessment or AML/CFT programme obligations or for failing to submit an annual AML/CFT report. warnings since 2013
Last updated on the 16th September 2019