Formal warning to Equity Trust International Ltd

The Department of Internal Affairs has issued a formal warning to an Auckland-based reporting entity under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act).

Equity Trust International Limited (Equity), company number 2136248, provides trust and company services to overseas-based customers. The warning was issued on 27 June 2017 under section 80 of the AML/CFT Act

Internal Affairs is the supervisory agency that monitors trust and company service providers for compliance with their obligations under the AML/CFT Act.

The Department conducted an on-site inspection of Equity on 12 April 2017. The on-site inspection identified that Equity had failed to establish, implement and maintain an adequate AML/CFT programme. In particular Equity had failed to conduct customer due diligence as required, failed to adequately monitor accounts and transactions, and failed to keep adequate records in accordance with the AML/CFT Act.

The Department required Equity to take immediate action to rectify all areas where it was non-compliant with its AML/CFT obligations. It will continue to monitor Equity and consider further enforcement action if it engages in conduct that does not comply with the Act.

This is the second formal warning to be published as a summary. Since the AML/CFT Act came into force on 30 June 2013, the Department has issued 21 non-public formal warnings, either for failure to meet particular risk assessment or AML/CFT programme obligations or for failing to submit an annual AML/CFT report.

ENDS

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