The New Zealand regulator FMA (Financial Markets Authority) issued a warning against one the companies that carries its license, Fullerton Markets. The warning came 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.
The FMA warned the broker to take a number of steps to eradicate the issues listed above, or they could face a penalty of NZ $2 million per offense.
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.
The FMA warned the broker to take a number of steps to eradicate the issues listed above, or they could face a penalty of NZ $2 million per offense.