Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Crackdown on Money Laundering Applauded

Crackdown on Money Laundering Applauded - Media Release


Download Media Release Document
30 October 2019
Transparency International New Zealand
Wellington New Zealand
Patron: Lyn Provost
Media Release

Transparency International New Zealand (TINZ) congratulates the Department of Internal Affairs (DIA) and for demonstrating that money-laundering is unacceptable.

Jin Yuan Finance Limited, a Money Transfer Company, was ordered to pay a penalty of over $4 million in a recent High Court judgment. According to the DIA the company, Jin Yuan, was prosecuted for repeated non-compliance with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) legislation.

The DIA accused the company of failing to conduct due diligence, monitor accounts and transactions, and comply with the requirement to report suspicious transactions. Jin Yuan Finance Ltd also claimed it dealt through only one bank account when there were multiple secret accounts. According to DIA there were 55,097 transactions through its accounts with a total of $278.5 million of business. It also failed to action a remediation plan that the DIA had put in place.

The prosecution is a result of increased effort on the part of DIA to monitor and prosecute violators of anti-money laundering laws since the strengthening of the AML/CFT regime in 2017.

It is essential to New Zealand's reputation and well being that serious effort is made to prevent money laundering activities within our financial, corporate and trust systems. TINZ is encouraged about the increased spotlight on AML/CFT compliance in New Zealand and internationally. It is reassuring to see that the DIA has strengthened its AML supervisory team, demonstrating a commitment to being effective.

TINZ is extremely concerned about how much more work remains to be done to improve registration of beneficial ownership.

Suzanne Snively, TINZ Chair observes, "We had high hopes that the Coalition Government would lead an initiative for New Zealand to be the first country in the world to have a central public register of beneficial ownership. This central register would have reduced duplication, enabled deeper scrutiny of the data provided by beneficial owners and would have enhanced the ease of doing business.

"Instead, New Zealand has moved further behind other countries. It's time for the Ministers of Justice, Commerce and Police to push harder to bring New Zealand in line with the UK and EU countries who are implementing beneficial ownership registers for companies and trusts."

Even with a robust register of beneficial ownership, diligence is still required to enforce anti-money laundering laws. A recent report by Transparency International UK highlights that dirty money has spread throughout the UK economy. Corrupt individuals have found innovative ways of laundering the proceeds of corruption, reaching as far as private schools and interior designers. (See report and this article.) A recent report claims that a complete lack of surveillance within UK's Companies House registration and monitoring procedures is undermining their attempts to track beneficial owners. (See this article.)

As the world continues to become more connected and moving money increasingly sophisticated, we must add resources and tools to thwart the movement of corrupt funds.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

TradeMe: Property Prices In Every Region Hit New High For The Very First Time

Property prices experienced their hottest month on record in December, with record highs in every region, according to the latest Trade Me Property Price Index.\ Trade Me Property spokesperson Logan Mudge said the property market ended the year with ... More>>

Motor Industry Association: 2020 New Vehicle Registrations Suffer From Covid-19

Chief Executive David Crawford says that like some other sectors of the New Zealand economy, the new vehicle sector suffered from a case of Covid-19. Confirmed figures for December 2020 show registrations of 8,383 were 25% ... More>>

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

University of Auckland: Pest-Free Goal Won’t Be Achieved Without New And Better Tools

New Zealand’s goal to become predator free by 2050 will remain an unrealised dream unless new technologies and advances in social engagement continue to be developed, researchers who first promoted it say. A team from the University of Auckland has ... More>>

OECD: Area Employment Rate Rose By 1.9 Percentage Points In The Third Quarter Of 2020

OECD area employment rate rose by 1.9 percentage points in the third quarter of 2020, but remained 2.5 percentage points below its pre-pandemic level The OECD area [1] employment rate – the share of the working-age population with jobs – rose ... More>>

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>