An eighty-branch real estate agency in New Zealand, Property Brokers, has received their first formal warning in the real-estate sector for failing to comply with the anti-money laundering laws. The chairman of the chain however denies the allegations and claims that the warning was given as a way for the state to set a precedent.
The official warning has been issued by the Department of Internal Affairs, Te Tari Taiwhenua, but no fine has been imposed as of yet. This is the first warning the firm has received under the AML legislation. The department has declared that the company has been breaching the 2009 Act of Anti-Money Laundering and Counter Financing of Terrorism.
The chairman, Tim Mordaunt, says that they believe that they were very compliant with all these regulatory measures. The company says that it has only been two years since these regulations were set in motion and they are still trying to learn and adapt to the changes.
Internal Affairs said: “Property Brokers Limited have failed to meet several of their AML/CFT obligations relating to the establishment, implementation and maintenance of their AML/CFT programme and the hiring and training of compliance staff. They also failed to have adequate policies, procedures and controls for monitoring compliance or to follow guidance material from AML/CFT supervisors.
Director of anti-money laundering group Internal Affairs, Mike Stone, said that the real-estate is known to be misused in money laundering by domestic criminals and international launderers. It is a high-value industry and it can also be used to invest criminal proceeds. Businesses have a responsibility to a proper system in place to protect themselves and their clients from being misused in any such way and help the nation to combat these illicit activities.
