Warnings against various brokers from regulators are a dime a dozen, but this one got a warning from the supervisor under the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act).
According to the FMA announcement, a compliance inspection found that the broker does not have adequate risk assessment and AML/CFT compliance programs. Worse still, Fullerton failed to carry out customer due diligence in line with the Amended Identity Verification Code of Practice. For example, failed to fully identify clients who are a politically exposed person (an individual with a prominent public function), particularly foreign politicians, as required by law.
Apparently they may be fined with NZ $2 million for each infraction.
According to the FMA announcement, a compliance inspection found that the broker does not have adequate risk assessment and AML/CFT compliance programs. Worse still, Fullerton failed to carry out customer due diligence in line with the Amended Identity Verification Code of Practice. For example, failed to fully identify clients who are a politically exposed person (an individual with a prominent public function), particularly foreign politicians, as required by law.
Apparently they may be fined with NZ $2 million for each infraction.