AML warning for broker firm
Friday, November 24th 2017, 11:35AM
The FMA has issued a formal AML/CFT warning to brokerage firm Fullerton Markets.
An inspection showed the firm did not have adequate risk assessment and compliance programmes.
It also failed to carry out customer due diligence in line with the amended identity verification code of practice.
It did not take reasonable steps to fully identify clients who were politically exposed.
It is now required to prepare and implement a risk assessment and compliance programme, review its customer on-boarding techniques, review all existing customers and develop a more appropriate level of transaction monitoring rules.
It will also have to review all customer transactions since the business began and check all customers for political exposure.
Liam Mason, FMA director of regulation, said: “We know that reporting entities have invested significantly in systems and resources to comply with the requirements of the law. It’s not fair on those who have made this effort if others do not do so. The FMA signalled in our last annual report that we would take formal action where we see firms failing to meet these requirements.”
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