The DIA has issued a formal warning to NZForex Limited for failing to meet several obligations under the AML/CFT Act. The case serves as a strong reminder of the importance of ongoing internal review and cooperation with regulators.
What happened?
According to the DIA’s press release, NZForex was found to have:
- Inadequate written procedures, policies, and controls.
- Insufficient staff training.
- Gaps in customer due diligence.
- Weak record-keeping practices.
While the business has since worked with the DIA to address these issues, the formal warning is a clear signal to other reporting entities: regulatory oversight is active, and compliance failings carry consequences.
Why internal review matters
One of the key lessons from this case is the need to proactively identify and address issues before an AML supervisor steps in. Waiting for your three-yearly AML/CFT audit might not be enough—especially in high-risk sectors or if your business has undergone change.
That’s where regular internal reviews and ‘mini audits’ come in. These are designed to:
- Identify compliance gaps early.
- Test whether your policies are being followed in practice.
- Keep your AML/CFT programme aligned with current risks and expectations.
Our ‘quick check’ review service
Strategi Compliance offers a cost-effective quick check service to help you stay on top of your obligations between formal audits. These mini audits can:
- Provide assurance that your compliance framework is working.
- Help prepare for future audits or supervisory reviews.
- Give peace of mind that nothing is slipping through the cracks.
Takeaway for reporting entities
This case reinforces two important principles:
- Regular review is essential – Don’t wait for your audit to find out something isn’t working.
- Cooperation counts – Engaging constructively with the DIA can make a meaningful difference when issues arise.
If you’re due for an internal review or want to make sure your compliance programme is fit-for-purpose, contact us today to book our quick check service.