tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, June 14th, 6:57PM

News

rss
Latest Headlines

AML compliance improves, despite three warnings

Advisers are better understanding their AML/CFT obligations, the Financial Markets Authority says.

Wednesday, February 17th 2016, 6:00AM

by Susan Edmunds

It has released its latest monitoring report for July 1, 2014, to June 30, 2015.

The FMA supervises 800 firms and individuals for AML compliance, of whom two-thirds define themselves as financial advisers.

The report said those reporting entities had made efforts to ensure they were complying with the AML/CFT Act.

But it said its team were still seeing a lack of senior management oversight, irregular AML/CFT reporting to senior management, not enough clear AML/CFT controls in procedures, insufficient ongoing customer due diligence (CDD) and monitoring and insufficient or unclear information on the nature and the purpose of the business relationship with some customers.

Liam Mason, director of regulation at the FMA said the sort of controls firms should consider adopting included a written programme of staff training, a regular internal review of new customer files to ensure CDD requirements were met, regular reviews of transactions, regular reporting to enssure management of AML/CFT matters and regular review and testing of the AML/CFT programme.

“The AML/CFT programme compliance is not a separate activity to the business; it is an essential element of day-to-day business operations and must always be followed."

Three formal warnings were issued during the year for significant breaches of the Act. They included not meeting key obligations in a risk assessment or compliance programme and failing to provide and independent audit report.

It said its future monitoring it would focus on senior management and board oversight of AMl/CFT policies, firms’ ongoing CDD and unusual transactions.

Mason said advisers’ understanding of what they needed to do was improving.  “Awareness of the AML/CFT Act and advisers’ obligations has certainly grown since our original monitoring report last year. Firms and individuals better understand our expectations and have improved their systems and processes to ensure compliance with the Act."

Compliance specialist Gavin Austin, of ABC, helps firms meet their AML requirements and conducts audits.

He said there was nothing very surprising in the report.

“We had found that there was often lack of clear AML/CFT controls.  Other findings were very similar [to ours] with regard to reviewing the risk Assessments and programmes and we had also noticed that after the initial training of staff there were no clear plans to provide refresher training. 

“The increase in the number of politically exposed persons (PEP) was surprising to us as no one we audited indicated they had anyone in that category, but we also noticed that if they did then they didn’t have a process to follow or they just didn’t know what to do next.”

Tags: FMA

« Single association would have more clout: DoddsLVR restrictions to be reviewed »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.74 ▼7.09 ▲6.95
SBS Bank Special - 7.14 ▼6.49 ▲6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.84 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.24 6.75 6.39
Median 8.64 7.19 7.17 6.65

Last updated: 12 June 2024 4:04pm

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