Financial services company CLSA Premium NZ (CLSAP NZ) has been ordered to pay 7 770.00 for violating anti-money laundering laws.
The Financial Markets Authority (FMA) has filed a lawsuit against a Hong Kong-owned derivative issuer, formerly known as KVB Conlon, claiming that the company was involved in anti-money laundering and terrorism. Failed to fulfill its obligations against financial laws (AML / CFT).
The FMA alleges that CLSAP NZ failed to properly check on its customers, did not keep proper records, and did not report suspicious transactions between 2015 and 2018, nor did it have business relationships with some customers. Disconnected
The violations covered transactions worth about 50 50 million, of which 40 40 million was for two-person deposits.
In May, CLSAP NZ admitted violations but disagreed with the FMA on the fines it should pay, which could be up to 7 million.
There was no suggestion that the company was involved in money laundering.
In the Auckland High Court in July, The FMA demanded a fine of about 1.5 1.5 million. But noted that after various discounts, it will come to $ 1.2 million.
However, CLSAP NZ said a fine of $ 420,000 was more appropriate.
In her ruling, which was released late Friday, Justice Rebecca Edwards said the company had been ordered to pay 7 770,000.
The judge said CLSAP NZ’s failure to raise funds for sources of wealth or certain transactions was “particularly relevant”.
Justice Edwards said that although the company had AML / CFT policies, they were undermined by executive directors interfering in compliance, the resignation of compliance officers due to differences with directors, and the CLSAP NZ’s decision to maintain business. Ready to accept “suspicious information”.
The ruling said an employee had been asked to resign by a director who told him he needed a “turner” as head of their compliance.
“Together they suggest these features. [CLSAP NZ’s] The lack of diligence was not unintentional. No misunderstandings arose about his responsibilities. Or as a result of wrong advice, “said Justice Edwards.
“I am satisfied that it accurately reflects the attractiveness of the fines and reflects the principles of prevention and condemnation.”
FMA chief enforcement Karen Chang sent a strong message to the decision that there are serious consequences for firms that choose to prioritize profits over needs under AML / CFT rules.
“It’s important for firms to take their compliance responsibilities seriously, to make sure they not only have the right programs, but that staff follow those programs.”
David Wallace, chairman of CLSAP New Zealand, said he had accepted the fine and had made extensive changes over the past two years to improve compliance within the company.
He said that the company has appointed a new board and management team, which has completely changed the culture of the company.