The Department of Internal Affairs has issued a formal warning to NZForex Limited for failing to meet its obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, following a systems issue in its prescribed transaction reporting processes. The issue led to NZForex not reporting 3,182 non-New Zealand dollar transactions to the New Zealand Police Financial Intelligence Unit over the period 1 November 2017 to 28 February 2024. NZForex voluntarily disclosed the non-compliance, has remediated the systems issue, and has reported all outstanding transactions; it is also voluntarily undertaking an independent audit. The Department said it placed significant weight on the voluntary disclosure in choosing a formal warning rather than more serious regulatory action, and noted NZForex is not alleged to be involved in money laundering or terrorist financing. NZForex must provide the Department with its final independent audit report and updates on steps taken to meet its legal obligations.
Department of Internal Affairs 2025-03-18
New Zealand Department of Internal Affairs issues formal warning to NZForex for failing to report 3,182 prescribed transactions under AML/CFT rules
The Department of Internal Affairs warned NZForex Limited for not complying with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 due to a transaction reporting issue. This led to 3,182 unreported transactions from November 2017 to February 2024. NZForex disclosed the issue, fixed the system, reported all transactions, and is auditing independently. The Department noted the voluntary disclosure in choosing a warning, with no allegations against NZForex. The company must submit its final audit report and compliance updates.