Financial advisers warned of money laundering risk

Financial advisers are being warned they are a potential target for money laundering and have been invited to fill out an online survey on the subject.

The Institute of Financial Advisers says recent high profile frauds show all advisers must be vigilant, but it is concerned that many advisors believe the risk is too small to be worried about.

President Lyn McMorran says advisors must ensure they know who they are dealing with and understand what potentially suspicious transactions might look like, adding it is not just about cash.

Under new legislation, financial advisers are required to undertake an assessment of such risks and the Institute says the survey will also provide information to assess the risk of financing terrorism.

-NEWSTALK ZB