Sharechat Logo

FX trader faces civil proceedings over lack of anti-money laundering processes

Wednesday 13th December 2017

Text too small?

Jin Yuan Finance, an Auckland-based foreign exchange trader, will face civil charges under anti-money laundering law in the Auckland High Court.

The FX trader, whose sole director and shareholder is Auckland-based Yuan Yuan, was issued a formal warning by the Department of Internal Affairs over its lack of anti-money laundering processes back in 2015. At the time, DIA said Jin Yuan had advised it was committed to rectifying its areas of non-compliance, and warned it would continue to monitor the business and take further action if appropriate.

Today, DIA said it has filed the civil proceedings, the third since the Anti-Money Laundering/Countering Financing of Terrorism Act first came into effect in 2013, not because Jin Yuan Finance is alleged to have been involved in money laundering or the financing of terrorism. Rather, it alleges that Jin Yuan Finance Limited failed to meet legal requirements involving customer due diligence, account monitoring, record keeping, the reporting of suspicious transactions, and failed to establish, implement and maintain an effective anti-money laundering and counter financing of terrorism programme. 

"The department is committed to detecting and deterring potential money laundering and terrorism financing; its role is to ensure certain financial institutions, including money remitters, meet their obligations under the AML/CFT Act," DIA said. "The obligations require these businesses to have robust processes in place to protect them from misuse. When a financial institution continues to fail in meeting their obligations under the AML/CFT Act the department can and will take action."

Monitoring of businesses' compliance with the act is split between the Reserve Bank, which is responsible for registered banks, life insurers and non-bank deposit takers; the Financial Markets Authority, which supervises issuers of securities, licensed supervisors, fund managers, brokers and custodians, financial advisers, derivatives issuers, DIMS providers and peer-to-peer lending and equity crowd funding service providers; and DIA, which covers casinos, money changers and remitters, and any other reporting entities not covered by the central bank or FMA.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ shares fell on global growth concerns
New Zealand dollar becalmed ahead of CPI data
Billionaire Aussie miner moves businesses to NZ in 'quixotic' CER gambit
RBNZ plucks bank capital numbers out of the air: Reddell
Genesis coal burn reached 5-yr high in 'unprecedented' conditions
Govt part-funds another $11m of low-emissions transport projects
January 22nd Morning Report
NZ dollar stalled ahead of CPI data; IMF trims global outlook
MARKET CLOSE: NZ stocks gain; investors seek value ahead of earnings season
NZ dollar drifts lower ahead of CPI; China GDP as expected

IRG See IRG research reports