The Department of Internal Affairs has issued a formal warning to an Auckland-based reporting entity

AML Partners is republishing this press statement issued by the Department of Internal Affairs as a reminder of how important it is to make sure you know and understand your obligations.

19 December 2017

The Department of Internal Affairs has issued a formal warning to an Auckland-based reporting entity under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act).

ECS Limited, company number 6213668, provides trust and company services to overseas- based customers – a registered office, a business address and a correspondence address that they can use in New Zealand. A number of ECS customers are financial service providers who provide financial services outside New Zealand.

The Department is the supervisory agency that monitors trust and company service providers for compliance with their obligations under the AML/CFT Act. The formal warning to ECS Limited was issued on 29 November 2017 under section 80 of the AML/CFT Act.

The Department undertook an initial visit to ECS Limited on 8 June 2017, a subsequent desk-based review of its written AML/CFT procedures and then an on-site inspection on 23 August 2017. These supervisory engagements identified that ECS Limited had failed to establish, implement and maintain an adequate AML/CFT programme. In particular ECS Limited had failed to conduct customer due diligence as required, failed to adequately monitor accounts and transactions, and failed to keep adequate records in accordance with the AML/CFT Act.

The Department required ECS Limited to take immediate action to rectify all areas where it was non-compliant with its AML/CFT obligations. It will continue to monitor ECS Limited and consider further enforcement action if it engages in conduct that does not comply with the AML/CFT Act.

This is the third formal warning to be published as a summary. Since the AML/CFT Act came into force on 30 June 2013, the Department has issued 23 non-public formal warnings, either for failure to meet particular risk assessment or AML/CFT programme obligations or for failing to submit an annual AML/CFT report. (via DIA)