Latest news with #Anti-MoneyLaunderingandCounteringFinancingofTerrorismAct2009
1News
01-08-2025
- Business
- 1News
Christchurch Casino agrees to pay $5.06m over compliance issues
A settlement has been reached in civil proceedings against Christchurch Casinos Limited. In December 2024, 1News reported the casino faced legal action over alleged compliance issues with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. As part of the settlement announced today, the casino has agreed to the High Court imposing a $5.06m penalty, as recommended by the Department of Internal Affairs. The casino also admitted seven causes of action in the department's amended state of claim, which stretched from December 2018 and December 2023. In a statement, the department said Christchurch Casino had failed to establish, implement and maintain a programme compliant with the Act, adequately monitor accounts, conduct complaint-enhanced customer due diligence, terminate existing business relationships when required, and keep records as required by the Act. ADVERTISEMENT Christchurch Casino was not alleged to have been directly involved in money laundering or the financing of terrorism. Internal Affairs' director of the Anti-Money Laundering and Countering Financing of Terrorism group, Serge Sablyak, said the agreement was a "significant and positive outcome". "It's encouraging to achieve our intended result without the time and expense of court proceedings," Sablyak said. "While the regulatory breaches were serious, we acknowledge Christchurch Casino's decision to admit to the breaches and take responsibility for what were substantial failings. "We're proud that our work has strengthened the integrity of New Zealand's financial system and has helped build public confidence in the prevention of money laundering and terrorism financing." The Department of Internal Affairs and the casino recommended the High Court proceed to a penalty hearing, to determine the appropriate penalty to be imposed.
1News
06-06-2025
- Business
- 1News
Foreign exchange fined amid transactions deemed 'objectively suspicious'
An Auckland-based foreign exchange and money remittance company has been convicted and fined $1.125 million for failing to report suspicious activities and to submit prescribed transaction reports. An investigation by the Department of Internal Affairs (DIA) found that Qian DuoDuo Limited, which traded under the name Lidong Foreign Exchange, found it failed to report 197 international transactions to China between June 2018 and September 2019. The transactions, which totalled over $19.14 million, included 26 "objectively suspicious" activities with a value of $4.72 million and 171 involved prescribed transactions with a value of $14.42 million. The value of the nearly 200 transactions represented around one fifth of the gross value transactions undertaken by Qian DuoDuo Limited for the 2018/2019 financial year. Two individuals who completed the transactions, Xiaoyu Lu and Musubayoufa Fuati, were convicted of criminal offending. ADVERTISEMENT Fuati was convicted of structuring transactions to avoid anti-money laundering laws, while Lu was convicted of providing unregistered financial services, as well as multiple counts of money laundering. Both pleaded guilty to their charges. In sentencing, the Auckland District Court found the company failed to carry out adequate customer due diligence on the source of Fuati and Lu's funds and relied on questionable verification documents despite recognising a high risk that its operations could be used to launder money. Anti-money laundering and countering financing of terrorism director Serge Sablyak said Internal Affairs took offences under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 "very seriously". "Suspicious transactions have the potential to be linked to money laundering or terrorist financing activities. Prescribed transaction reports are vital in alerting law enforcement to suspected offenders and make money laundering and terrorist financing difficult to hide." Sablyak said Qian DuoDuo Limited had a "history of non-compliance". "In 2017, the Department took civil action against the company following non-compliance with its obligations, and the High Court confirmed multiple breaches of the company's legal obligations. "When financial institutions, including money remitters, continue to fail to meet their obligations under the Act, the Department can and will take action." ADVERTISEMENT Qian DuoDuo Limited appealed the District Court's decision to the High Court.
