FMA Takes Legal Action Against InvestNow for Breaches of AML/CFT Laws
The Financial Markets Authority (FMA) has filed civil proceedings against InvestNow Savings and Investment Service Ltd for significant breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009(AML/CFT Act). The proceedings, lodged in the High Court in Wellington, stem from compliance failures by InvestNow between late 2018 and late 2022.
The FMA alleges that InvestNow failed to establish and maintain an adequate AML/CFT programme, did not properly conduct customer due diligence, and neglected to monitor accounts for suspicious activity between late 2018 and late 2022. The regulator also claims the company failed to obtain essential information regarding the nature and purpose of its customer relationships and did not terminate business relationships when required.
The FMA issued a formal warning to InvestNow in September 2022 after concerns were raised about the company’s failure to meet AML/CFT requirements. Despite this warning, an investigation found that InvestNow’s non-compliance was both ‘substantial and systemic’, leading to the decision to pursue legal action.
The FMA is seeking a court declaration that InvestNow breached the AML/CFT Act, as well as a financial penalty to be paid to the Crown. The case highlights the regulator’s commitment to enforcing robust anti-money laundering practices across New Zealand’s financial sector.
If you would like to review your compliance to ensure you’re meeting your obligations appropriately, get in touch with our team to discuss your options. We have a range of services to help you get the full picture of your compliance, from a simple health check to in-depth assurance testing.
Sonia Patel, Consultant, BCom
Sonia joined AML Solutions in 2023 from AMLHUB, bringing with her strong experience in assurance and AML/CFT compliance. She holds a BCom in accounting, and is responsible for conducting assurance, assisting with AML/CFT audits, and providing other consulting services.