Firms given warnings for failing compliance audits
New Zealand issues 10 formal notices for companies who didn't fulfil their AML/CTF obligations.
IN a taste of what might be in store for Aussie entities, New Zealand has issued formal warnings to 10 firms for failing to complete AML/CTF audits.
The companies – all of which were publicly named – include six NZ law firms and one real estate agency.
Others were an accountancy firm, a payment provider and a non-bank lender.
Each failed on at least two occasions to undertake an independent audit of its AML/CTF program.
It signals a tougher stance by the NZ Department of Internal Affairs, which co-supervises the country’s AML/CTF legislation.
“This is the first time we have issued multiple co-ordinated formal warnings for failing to complete a required independent audit,” Laura Olsen, acting director AML/CTF, said.
“Today’s action signals a clear expectation that reporting entities must comply with their legal obligations.
“These exist to protect us from financial crime, by helping us spot gaps in the system that could allow dirty money to slip through.
“This isn’t compliance for compliance’s sake. Independent audits help us check whether a reporting entity’s AML/CTF program actually works, identifies gaps and ensures compliance isn’t just paper-based.”
New Zealand’s regime came with the introduction of the AML/CTF Act 2009. It has covered lawyers and conveyancers since July 2018.
Entities must submit an annual report and have their program audited every three years.
Penalties for non-compliance can be as high as $NZ5 million for a company, and $NZ300,000 for an individual.
New Zealand is not shy about policing the Act. Last year an Auckland foreign exchange firm was fined $NZ1.125 million for failing to report more than $NZ19 million in dodgy transactions.
