quora
Read More about fast-id page

Shufti globally launches webinr-icon - a new kind of identity solution!

Shufti globally launches - a new kind of identity solution!

Read more

NZ FMA Announces to Tighten AML/CFT Approach

image1-1

FMA intends to closely monitor firms’ processes, with comprehensive assessments of how they onboard new customers, their monitoring activities, and filing of SARs to the FIU.

The Financial Markets Authority (FMA),  New Zealand’s government agency responsible for financial regulation, has announced plans to enforce a tightened approach to non-compliance with anti-money laundering and countering financing of terrorism (AML/CFT) rules, according to a new report.

The FMA released its AML/CFT Monitoring Insights Report that discusses the country’s AML/CFT Act compliance activities over the past three years (1 July 2018 – 30 June 2021). The report mentions that the FMA issued 27 private warnings, three public warnings and held its first-ever legal proceedings against the derivative issuer CLSA Premium NZ due to NZ$770k AML breach. Compared to the FMA’s previous monitoring report (1 July 2016 – 30 June 2018), one public warning and 17 formal, private warnings were issued.

“New Zealand’s AML / CFT regime has been in place for eight years and companies have had ample time to comply with the regulations,” said James Greig, FMA’s director of oversight. “As a result, we now have less tolerance for companies that do not meet their obligations, which translates into an increased number of enforcement actions.”

AML/CFT measures are mandated for businesses worldwide to prevent them from being used, intentionally or unintentionally, by criminal entities for money laundering or terrorist financing activities. To automate compliance processes, companies typically employ AI-powered AML/CFT solutions, making it effortless to avoid facing hefty fines and penalties. 

The FMA has also revealed that Suspicious Activity Reports (SAR) submitted to the Police Financial Intelligence Unit (FIU) significantly rose from 170 in 2018-2019 to 257 in 2019-2020, and 493 in 2020-2021 respectively. 

New Zealand’s AML Act requires all reporting entities to perform self-risk assessments and devise AML/CFT compliance programmes, audited every two years (now every three years, with effect from 9 July 2021) or at any other time at the request of their AML/CFT supervisor.

In the future, FMA intends to closely monitor firms’ processes, with comprehensive assessments of how they onboard new customers, their monitoring activities, and filing of SARs to the FIU.

The regulator will also be assessing how well entities relied on the FMA’s COVID-19 related guidance, that limits an entity’s ability to onboard new customers and perform account monitoring. The FMA will be assessing if businesses applied the guidance correctly.

The FMA will also be monitoring the financial advice sector following the implementation of the financial advice regime in March 2021, which means some financial advisers will become FMA-reporting entities. The FMA will closely monitor the sector to determine if there is any material change in the level of ML/TF risk.

Suggested Read: AML Screening in the light of Compliance Regimes Around the Globe

Related Posts

News

United States Senate, UAE Government, and Spain Make Significant Efforts to Curb Money Laundering and Terrorist Financing Activities

UK Parliament Legislates New Digital Identity Verification Services Bill Taiwan and Singapore St...

United States Senate, UAE Government, and Spain Make Significant Efforts to Curb Money Laundering and Terrorist Financing Activities Read More

News

UK Parliament Legislates New Digital Identity Verification Services Bill

At the same time, trade bodies and digital identity service providers have consulted with the gov...

UK Parliament Legislates New Digital Identity Verification Services Bill Read More

News

Taiwan and Singapore Strengthen AML Regulations for Virtual Asset Providers and Banks

According to the recently passed amendments, overseas crypto platforms are obliged to set up loca...

Taiwan and Singapore Strengthen AML Regulations for Virtual Asset Providers and Banks Read More

News

Singapore and Europe Enhance AML Framework to Fight Financial Crimes Effectively

For the CSPs, the law mandates that they must ensure that the arranged nominees are “fit and prop...

Singapore and Europe Enhance AML Framework to Fight Financial Crimes Effectively Read More

News

Türkiye Removed From Gray List, India Recognized for Its AML Efforts, and Kuwait Urged to Have Better Money Laundering Control Measures: FATF Updates

In addition to these shortcomings, the watchdog discovered that the country’s banking, constructi...

Türkiye Removed From Gray List, India Recognized for Its AML Efforts, and Kuwait Urged to Have Better Money Laundering Control Measures: FATF Updates Read More

News

FINMA, SFC, and MAS Fine Multiple Financial Institutions Over $1.5 Billion For Money Laundering Activities

These suspicious transactions amounted to more than $300 million and were conducted between 2002 ...

FINMA, SFC, and MAS Fine Multiple Financial Institutions Over $1.5 Billion For Money Laundering Activities Read More

News

Nigeria, Myanmar, and Türkiye Take Effective Steps to Meet FATF Recommendations

Mohammad Shahid Ahmed, the Chief of Staff at NFIU, has been appointed as the Vice Chairman of the...

Nigeria, Myanmar, and  Türkiye Take Effective Steps to Meet FATF Recommendations Read More

News

Regulatory Authorities Fines TD Bank, Adelaide Casino, and SBI over $500 Million For AML Failings

In addition to this, the spokesperson also stated that the company failed to comply with due dili...

Regulatory Authorities Fines TD Bank, Adelaide Casino, and SBI over $500 Million For AML Failings Read More

News

United States Senate, UAE Government, and Spain Make Significant Efforts to Curb Money Laundering and Terrorist Financing Activities

UK Parliament Legislates New Digital Identity Verification Services Bill Taiwan and Singapore St...

United States Senate, UAE Government, and Spain Make Significant Efforts to Curb Money Laundering and Terrorist Financing Activities Read More

News

UK Parliament Legislates New Digital Identity Verification Services Bill

At the same time, trade bodies and digital identity service providers have consulted with the gov...

UK Parliament Legislates New Digital Identity Verification Services Bill Read More

News

Taiwan and Singapore Strengthen AML Regulations for Virtual Asset Providers and Banks

According to the recently passed amendments, overseas crypto platforms are obliged to set up loca...

Taiwan and Singapore Strengthen AML Regulations for Virtual Asset Providers and Banks Read More

News

Singapore and Europe Enhance AML Framework to Fight Financial Crimes Effectively

For the CSPs, the law mandates that they must ensure that the arranged nominees are “fit and prop...

Singapore and Europe Enhance AML Framework to Fight Financial Crimes Effectively Read More

News

Türkiye Removed From Gray List, India Recognized for Its AML Efforts, and Kuwait Urged to Have Better Money Laundering Control Measures: FATF Updates

In addition to these shortcomings, the watchdog discovered that the country’s banking, constructi...

Türkiye Removed From Gray List, India Recognized for Its AML Efforts, and Kuwait Urged to Have Better Money Laundering Control Measures: FATF Updates Read More

News

FINMA, SFC, and MAS Fine Multiple Financial Institutions Over $1.5 Billion For Money Laundering Activities

These suspicious transactions amounted to more than $300 million and were conducted between 2002 ...

FINMA, SFC, and MAS Fine Multiple Financial Institutions Over $1.5 Billion For Money Laundering Activities Read More

News

Nigeria, Myanmar, and Türkiye Take Effective Steps to Meet FATF Recommendations

Mohammad Shahid Ahmed, the Chief of Staff at NFIU, has been appointed as the Vice Chairman of the...

Nigeria, Myanmar, and  Türkiye Take Effective Steps to Meet FATF Recommendations Read More

News

Regulatory Authorities Fines TD Bank, Adelaide Casino, and SBI over $500 Million For AML Failings

In addition to this, the spokesperson also stated that the company failed to comply with due dili...

Regulatory Authorities Fines TD Bank, Adelaide Casino, and SBI over $500 Million For AML Failings Read More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started