FMA fast tracks money laundering probes

New Zealand's Anti- Money Laundering and Countering Financing of Terrorism Act requires businesses to try and guard against money laundering. Photo / AP

New Zealand's markets regulator has fast-tracked the audit of five entities because of concerns about their compliance with laws that try stop money laundering and terrorism financing.

Money laundering is a tool for criminals to hide where the money originated from and regulations that came fully into force last June placed obligations on financial institutions to "detect and deter" these illegal practices.

The law - the Anti-Money Laundering and Countering Financing of Terrorism Act - requires businesses to try and guard against money laundering.

A number of New Zealand agencies, including the Reserve Bank and Department of Internal Affairs, are required to supervise the regime.

The law requires all relevant entities to undergo an audit of their AML/CFT programmes.

The Financial Markets Authority is required to monitor issuers of securities, trustee companies, futures dealers, collective investment schemes, brokers, and financial advisers, according to Internal Affairs.

In its latest investigations and enforcement report, released yesterday, the FMA said it brought forward the audit of five entities by between 6 and 9 months.

"This was in response to concerns about the entities' compliance with the AML/CFT Act," the authority said its report, which covered the last 12 months to June 30.

The FMA said it used its powers to require the entities to provide copies of audit, and a spokesman said some of these are yet to be returned.
Read the latest FMA enforcement report here: