New Zealand's Department of Internal Affairs announced that Auckland-based foreign exchange and money remittance firm Qian DuoDuo Limited, trading as Lidong Foreign Exchange, has been convicted and fined NZD 1.125 million for failing to report suspicious activity and to submit prescribed transaction reports under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. The Department’s investigation found that between June 2018 and September 2019 the firm failed to report 197 international transactions to China totalling more than NZD 19.14 million, including 26 objectively suspicious transactions worth NZD 4.72 million and 171 prescribed transactions worth NZD 14.42 million. These transactions represented just over 19% of the gross value of all transactions undertaken by the company between 1 July 2018 and 30 June 2019. In sentencing, the District Court found the company did not conduct adequate customer due diligence on the source of funds associated with two individuals, Xiaoyu Lu and Musabayoufa Fuati, and relied on questionable verification documents despite recognising its operations were at high risk of being used to launder money; both individuals have been convicted of criminal offending. Qian DuoDuo Limited has appealed the District Court’s decision to the High Court.
Department of Internal Affairs 2025-06-05
New Zealand's Department of Internal Affairs secures NZD 1.125 million fine against Qian DuoDuo for AML/CFT reporting failures
New Zealand's Department of Internal Affairs fined Auckland-based Qian DuoDuo Limited, trading as Lidong Foreign Exchange, NZD 1.125 million for failing to report suspicious activity and transactions under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. The firm did not report 197 international transactions to China, totaling over NZD 19.14 million, including 26 suspicious transactions worth NZD 4.72 million. The District Court found inadequate customer due diligence and reliance on questionable documents, with the firm appealing to the High Court.