The financial services company CLSA Premium NZ (CLSAP NZ) has been ordered to pay $770,00 for breaching anti-money laundering rules.
The Financial Markets Authority (FMA) filed proceedings against the Hong Kong owned derivatives issuer, formerly known as KVB Kunlun, claiming that the company failed to meet its duties under anti-money laundering and countering financing of terrorism rules (AML/CFT).
The FMA alleged that CLSAP NZ failed to carry out proper checks on its clients, it did not keep adequate records, and it did not report suspicious transactions or sever business ties with some clients between 2015 and 2018.
The breaches covered nearly $50 million worth of transactions, $40m of which were related to deposits made by two individuals.
In May, CLSAP NZ admitted to the breaches but disagreed with the FMA on the penalty it should pay, which could be as much as $7m.
There was no suggestion the company engaged in money…