The Financial Markets Authority (FMA) of New Zealand has filed civil proceedings against InvestNow Saving and Investment Service Ltd, which trades as InvestNow, for alleged breaches of the Anti-Money Laundering and Countering of Terrorism Act 2009 (AML/CFT Act).
The FMA alleges that InvestNow breached the AML/CFT Act by failing to establish, implement and maintain an adequate AML/CFT programme and failing to obtain information on the nature and purpose of the proposed business relationship between customers and InvestNow.
The regulator also alleges that InvestNow failed to conduct enhanced customer due diligence, failed to adequately conduct account monitoring, and failed to terminate business relationships when required.
The proceedings follow a warning the FMA issued to InvestNow in September 2022 for failing to comply with AML/CFT Act requirements, including conducting customer due diligence to the extent required by the Act, and having adequate and effective processes and procedures. After issuing the warning, the FMA opened an investigation into InvestNow’s compliance with the Act and concluded that the extent of InvestNow’s non-compliance warrants the commencement of civil proceedings.
The FMA considers InvestNow’s failures to be significant and, in some respects, systemic. The FMA alleges that the breaches predominantly occurred from late-2018 to late-2022.
The FMA is seeking a declaration from the Court that InvestNow breached the AML/CFT Act and that a pecuniary penalty is to be paid to the Crown. The proceedings were filed in the High Court in Wellington.
