The Department of Internal Affairs has issued a formal warning to NZForex Limited for failing to meet its obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

NZForex voluntarily disclosed to DIA that it had identified a system issue with its prescribed transaction reporting processes. This resulted in NZForex failing to report 3,182 transactions (that were not denominated in New Zealand Dollars) to the New Zealand Police Financial Intelligence Unit between 1 November 2017 to 28 February 2024.

NZForex has since taken steps to remediate the system issue and has reported all outstanding transactions. NZForex is also undertaking an independent audit voluntarily.

“DIA acknowledges that NZForex has voluntarily disclosed the non-compliance, and we commend NZForex for disclosing the non-compliance, admitting fault and taking steps to resolve the system issue.” says Serge Sablyak, Director Anti-Money Laundering, DIA.

“DIA placed significant weight on NZForex’s prompt and voluntary disclosure in deciding to issue a formal warning instead of taking regulatory action that is more serious.”

NZForex will be required to provide DIA with its final independent audit report, as well as updates on steps taken to comply with its legal obligations.

NZForex is not alleged to be involved in money laundering or the financing of terrorism. However, under the AML/CFT Act, all New Zealand reporting entities must have in place systems to detect and report potential money laundering and financing of terrorism.

For more information about DIA’s role in the AML/CFT system and our regulatory approach visit: https://www.dia.govt.nz/AML-CFT-Homepage.

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