The Department of Internal Affairs (DIA) announced it had issued a formal warning to the Australian company for failing to establish, implement, and maintain an anti-money laundering programme in New Zealand. They had also failed to adequately monitor accounts and transactions over a lengthy period of time.

The DIA made a point to emphasise that financial services companies like Openpay have a duty under the Anti-Money Laundering and Countering Financing of Terrorism Act to ensure they are not used to move money illegally. However they were quick to state that Openpay was not alleged to be involved in money laundering or the financing of terrorism.

Mike Stone, Director of the Anti-Money Laundering Group said, “The issuing and publication of this formal warning demonstrates DIA’s willingness to take proportional action in response to non-compliance that can range in severity and consequence, from formal warnings through to criminal prosecution.”

This warning again shows the intent of the supervisors and that it is so important to meet expected AML compliance standards. If you are worried about where your compliance is at, don’t hesitate to contact the friendly compliance team at Strategi.