Anti-money laundering and countering financial of terrorism monitoring report, December 2016

Aim: To summarise the findings of the FMA’s AML/CFT monitoring during the period 1 July 2015 to 30 June 2016,

Outcome: Completing the module may help Reporting Entities, financial advisers and their businesses:

  • Better understand the FMA’s expectations of AML/CFT compliance, and
  • How they might improve their systems and processes to ensure compliance with the AML/CFT Act 2009 (the Act).

Abstract: Findings from the FMA’s AML/CFT compliance monitoring, over the period 1 July 2015 to 30 June 2016, are outlined. Of the 800 entities supervised by the FMA, approximately two thirds are financial advisers, with the rest made up of other types of licensed entities. Specific observations on the areas of on-going customer due diligence; identification and monitoring of high risk customers; and governance and management oversight, are noted. Examples of both good and unsatisfactory practice are provided to help illustrate the FMA’s expectations of reporting entities in relation to compliance with the Act. The legal obligations on REs under the Act have been in place now for three years. In future, the FMA will be adopting a stronger position where it sees a failure to meet these obligations.