The Financial Markets Authority (FMA) says the failure of entities to meet AML/CFT obligations, undermines confidence in New Zealand markets.

The FMA has published its Annual Corporate Plan (ACP), which outlines its work plan for the next financial year and sets objectives for raising standards of behaviour across financial services.

The development of the 2019-20 ACP is based on a new sector-based approach that is set out in the FMA’s refreshed Strategic Risk Outlook (SRO).

In the ACP the FMA says it will monitor and enforce reporting entities’ compliance with anti-money laundering and countering the financing of terrorism (AML/CFT) requirements. In addition, it will contribute to cross-Government preparations for the upcoming Financial Action Task Force review of New Zealand’s AML/CFT policies and practices.

The report also states the FMA’s intention to implement a new advice regime for regulating financial advice, including developing a monitoring and enforcement approach for transitional and full licensing.

Its response to frauds and scams will be to raise awareness of scams, including publishing warnings and participating in fraud-awareness activities.

“Our work to maintain capital market integrity, ongoing monitoring of advisers and implementation of the new advice regime, AML/CFT monitoring, work with frontline supervisors, and engagement with investors and customers are all critical to delivering fair, efficient and transparent financial markets,” says FMA chief executive Rob Everett.