Internal Affairs takes action against a money remitter

The Department of Internal Affairs has filed civil proceedings in the Auckland High Court against an Auckland-based money remitter, Jin Yuan Finance Limited (company number 4083558), under anti-money laundering law.

This is the third civil proceedings to be filed since the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) took effect on 30 June 2013.

The Department issued a formal warning to Jin Yuan Finance Limited in July 2015. It is not alleged that Jin Yuan Finance Limited was actually involved in money laundering or the financing of terrorism. Rather, the Department alleges that Jin Yuan Finance Limited failed to meet AML/CFT Act requirements involving customer due diligence, account monitoring, record keeping, the reporting of suspicious transactions and failed to establish, implement and maintain an effective AML/CFT programme.

The Department is committed to detecting and deterring potential money laundering and terrorism financing; its role is to ensure certain financial institutions, including money remitters, meet their obligations under the AML/CFT Act. The obligations require these businesses to have robust processes in place to protect them from misuse. When a financial institution continues to fail in meeting their obligations under the AML/CFT Act the Department can and will take action.

As this matter is before the High Court, the Department cannot comment further at this time.

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