Money remitters need to improve AML/CFT compliance

2 July 2019

There are still some money remitters that are not complying with their Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) obligations. Wellington-based Run Da International Limited (Run Da) was issued with a formal warning by the Department of Internal Affairs (DIA) for non-compliance under the AML/CFT Act.

Run Da International Limited, company number 1827791, provides money remittance services to domestic and overseas-based customers. The Department issued a formal warning to Run Da on 21 May 2019 for failing to conduct customer due diligence; failing to adequately monitor accounts and transactions; failing to keep records and failing to establish, implement or maintain an AML/CFT programme.

DIA has engaged with Run Da on numerous occasions to educate and encourage the business to comply with the Act. However, Run Da continued to have on going deficiencies in its AML/CFT compliance programme. It is not alleged that Run Da was involved in money laundering or the financing of terrorism.

“Money remitters provide an important service to customers who are looking for a cost-effective solution to transfer or receive money overseas. However, the money remittance sector poses a high risk for money laundering, it often utilises cash and enables money to be moved quickly between countries. It is therefore very important that money remitters conduct proper customer due diligence, monitor their customer’s transactions and report prescribed transactions to the NZ Police Financial Intelligence Unit (FIU),” said Mike Stone, Director of the Department’s AML Group.

"We have worked with Run Da to lift their level of compliance, but they have not managed to meet the required standard. We have seen some good examples of small money remittance businesses who are compliant with their AML/CFT obligations. Small businesses are in a good position to really know their customers, understand their ML/TF risks and have robust systems in place with an AML/CFT programme to mitigate those risks.”

This is the seventh formal warning to be published as a summary. Since the AML/CFT Act came into force on 30 June 2013, the Department has issued 28 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.

The Department is committed to supporting money remitters, and other businesses, meet their obligations under the AML/CFT Act. For more information about your AML/CFT obligation, visit https://www.dia.govt.nz/AML-CFT-Homepage , email: AMLCFT@dia.govt.nz or call 0800 25 78 87.

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Media contact:
Department of Internal Affairs Media Team
027 535 8639