New Zealand regulator sues Hong Kong forex trader for money laundering, terrorism financing law breaches
- New Zealand arm of CLSA Premium accused by regulator of failing to conduct due diligence, report suspicious transactions
- Transactions at issue occurred between April 2015 and November 2018, according to Financial Markets Authority
Regulators in New Zealand filed a lawsuit on Tuesday against the local arm of Hong Kong-based foreign-exchange trader CLSA Premium, accusing the company of breaching anti-money-laundering and terrorism financing laws.
The Financial Markets Authority (FMA) accused CLSA Premium New Zealand, formerly known as KVB Kunlun New Zealand, of failing to conduct sufficient customer due diligence, failing to report suspicious transactions and failing to keep required records on numerous occasions.
“The anti-money-laundering legislation is a cornerstone to protecting the integrity of New Zealand’s financial system and it’s imperative that financial services firms ensure they are compliant,” Nick Kynoch, the FMA’s general counsel, said in a press release. “CLSAP NZ needs to be held to account and our approach sends an important message of deterrence to the industry.”
CLSA Premium New Zealand did not respond to a request for comment. A person who answered the phone at the company’s Hong Kong offices referred all inquiries to its Auckland office.
The regulator said transactions at issue occurred between April 2015 and November 2018, and involved about NZ$50 million (US$32 million). The maximum penalty for each alleged breach is NZ$2 million, according to the FMA.
The FMA said it had filed its civil proceedings in the High Court in Auckland and was seeking monetary penalties and court costs. The court filing was not immediately available on Tuesday.
