An Auckland-based financial institution has received the first public warning issued by the Department of Internal Affairs under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act). The AML/CFT Act requires New Zealand’s financial institutions to have processes in place to detect and deter money laundering and terrorism financing, and to protect their businesses from misuse.
The Department issued a formal warning to Jin Yuan Finance Limited (JYF), company number 4083558, under section 80 of AML/CFT Act on 7 July 2015. It has now issued a public summary of the warning.
“The investigations identified that Jin Yuan Finance had failed to establish, implement and maintain an adequate and effective AML/CFT programme,” the Department’s General Manager of Regulatory Services, Maarten Quivooy said. “In particular, JYF had failed to conduct customer due diligence as required, failed to adequately monitor accounts and transactions, failed to keep adequate records and failed to ensure that its branches comply with all relevant obligations.”