The New Zealand financial regulator, the Financial Markets Authority, or FMA, has made a new announcement on Monday. This announcement was in regards to issuing a formal warning to one Tiger Brokers (NZ) Limited. Tiger Brokers stands as a New Zealand Exchange (NZX) accredited broker and is currently claimed not to have the appropriate anti-money laundering (AML) protections set in place.
Tiger Brokers Alongside Six Others Identified
While the FMA has put the spotlights on Tiger Brokers, the New Zealand watchdog has identified six more businesses the regulator has found lacking in AML measures. As it stands now, however, the FMA has concluded to withhold the name of these entities to the public.
The FMA had uncovered these lacking AML measures when the companies took part in the watchdog’s ongoing monitoring of about 800 businesses. These businesses report to the FMA, as mandated by the country’s Anti Money Laundering and Countering Financing of Terrorism Act, formally known as AML/CFT.
The List Of Accusations
When it comes to the Tiger Brokers matter, the FMA has found a range of issues. According to today’s statement, the broker had failed to verify customer identification documents accurately. They were unable to conduct any ongoing or enhanced forms of due customer due diligence.
They failed to report any suspicious activity to the relevant authorities within the three working day period as stipulated by law when suspicion has formed. Furthermore, they failed to provide adequate information when it comes to the source of funds or wealth when it comes to high-risk customers, further failing to take reasonable steps to verify this information.
This, alongside the abstinence of taking reasonable steps to ensure that a customer, or otherwise any beneficial owner, was a politically exposed person, led the FMA to conclude that there was reason to believe they’ve breached the Act.
Given Time To Remedy
With the new findings of the regulator, Tiger Brokers must now submit a new plan to the FMA before the 17th of April, 2020. Through this plan, the stock trading broker must outline how it will fix the issues that the complaint had identified. After the plans have been stipulated, the company will have until the 30th of September, 2020, to implement these actions. Should they not, the FMA will start with enforcement actions, according to the statement.
With any luck, this matter can be resolved quickly, and all appropriate amendments to Tiger Brokers and the six unnamed companies will be done without error.