About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, January 21st, 6:17PM
rss
Latest Headlines

Financial advice sector ‘medium to high risk’ for money laundering

Financial advisers have a medium to high risk of being targeted by money launderers, according to the Securities Commission’s anti-money laundering Sector Risk Assessment (SRA).

Thursday, March 31st 2011, 5:00AM

by Benn Bathgate

The Securities Commission is responsible for supervising financial advisers for the purposes of the Anti-Money Laundering and Countering the Financing of Terrorism Act 2009, and the SRA report has been compiled by the Commission to "assist in understanding the risks of money laundering in the sector."

According to PricewaterhouseCoopers director of forensic services Alex Tan, while banks and casinos - easier targets for money laundering - are better equipped to deal with the threat, financial advisers would be an area of concern for the Securities Commission.

The Commission estimated there are around 5,000 financial advisers in New Zealand, and just 107 (2%) responded to the Securities Commission questionnaire.

Tan said that while advisers have been preoccupied with the new Financial Advisers Act, most "don't understand that they are captured by the [anti-money laundering] Act, and they don't understand the obligation it will place upon them."

The report estimated that while approximately 5,000 advisers undertake around 20 million transactions annually, with as much as $30 billion passing through the securities sector, "awareness of anti-money laundering and countering the financing of terrorism among financial advisers is generally low."

While Securities Commission research found that the vast majority of advisers do not accept cash, their role as a contact point between investment product providers and customers is highlighted as an area of possible concern.

This intermediary role was also highlighted in a Reserve Bank SRA on money laundering.

"The role of intermediaries, such as insurance brokers, is considered a major risk of involvement in money laundering/terrorist financing. The increased risk stems from the ability of intermediaries to control the arrangement and the sales environment in which they operate. Use of intermediaries may also circumvent some of the due diligence effectiveness by obscuring the source of the funds from third parties."

The role of due diligence - and the advisers position to carry it out - is also highlighted in the Securities Commission report.

"Financial advisers are best placed to undertake customer due diligence and submit suspicious transaction reports. They have an all-round view of a customer's investment transaction behavior  that a product provider cannot have."

 

 

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

« News Round Up: March 28KiwiSaver mismatch a 'huge challenge' for advisers »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 4.05 4.49
ANZ Special - 3.55 3.55 3.99
ASB Bank 5.20 3.89 4.05 4.39
ASB Bank Special - 3.39 3.55 3.89
BNZ - Classic - 3.49 3.55 3.89
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.54 3.54 3.69
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 3.97 4.05 4.39
Kiwibank ▼5.15 4.20 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.45 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 ▼4.45 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.39 ▲3.55 3.89
Sovereign 5.30 3.89 4.05 4.39
Sovereign Special - 3.39 3.55 3.89
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.19 4.35 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.39 3.55 3.89
Wairarapa Building Society ▼5.50 ▼3.95 ▼4.05 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.39 3.55 3.99
Median 5.34 3.97 4.05 4.39

Last updated: 21 January 2020 10:41am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com