CLSAP admits to anti-money laundering breaches

CLSA Premium New Zealand Limited (CLSAP NZ) has admitted to breaches of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act, following proceedings brought by the Financial Markets Authority – Te Mana Tātai Hokohoko (FMA).

The FMA filed proceedings in June 2020, in the Auckland High Court, alleging CLSAP NZ failed to comply with its obligations under the AML/CFT Act between April 2015 and November 2018.

CLSAP NZ and the FMA have filed an agreed statement of facts in which CLSAP NZ has admitted the following breaches of the AML/CFT Act:

  • Failure to conduct customer due diligence as required by Part 2 of the AML/CFT Act;
  • Failure to terminate an existing business relationship in accordance with section 37 of the AML/CFT Act;
  • Failure to report suspicious transactions / activity as required by section 40 of the AML/CFT Act; and
  • Failure to keep records in accordance with sections 49 and 50 of the AML/CFT Act.

A court hearing for a pecuniary penalty against CLSAP NZ is set down for 5 July 2021.

CLSAP NZ, formerly KVB Kunlun New Zealand Limited, is the local subsidiary of the Hong Kong parent, CLSA Premium Limited. CLSAP NZ provides derivatives trading services and is licensed by the FMA as a derivatives issuer.

The directors of CLSAP NZ during the relevant times were Rongjun (June) Zhang, Songyuan Huang (Benny Wong), Stefan Liu, Robert Manwarring Noakes and Richard Clive Pearson. The directors are not parties to the proceedings.

The FMA will comment further on the proceedings after the penalty hearing.

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