An Auckland based company has been given the first public warning under legislation aimed at stopping money laundering and terrorism financing.
Internal Affairs Photo: RNZ / Alexander Robertson
The Internal Affairs Department has given Jin Yuan Finance Limited notice, and is putting out a public summary.
The Anti-Money Laundering and Countering Financing of Terrorism Act requires New Zealand financial institutions to have processes in place, and protect their business from misuse.
The Department said the finance company had failed to establish, implement or maintain such a programme.
It has asked the company to immediately fix things, and said Jin Yuan Finance had committed to do so.
The Department said the Act had now been in force for more than two years, and it was an important piece of legislation.
Manager of regulatory services Maarten Quivooy said there was no suggestion Jin Yuan Finance had harboured such behaviour, but he said the company had failed to establish, implement or maintain a programme to detect and deter it, and protect the business from misuse.
"We felt that they hadn't taken the steps that they are required to do under the legislation, we've been working with them, giving them encouragemant but actually they've now failed to take steps, and we've issued them witha formal warning."
It was monitoring the company and said it could consider further enforcement action if appropriate, including financial penalties.