On 1 April 2019, the FMA released an industry feedback report with findings that the industry it supervises for anti-money laundering, was still not getting it right in basic areas. This includes developing and maintaining a business risk assessment, along with managing adequate and effective systems for client profiling and transaction monitoring.
So why such a fuss around an AML/CFT risk assessment?
All NZ AML supervisors enforce the need to carry out a business risk assessment as the first step in managing risks and developing effective controls. The purpose is to ensure vulnerabilities are correctly identified. If vulnerabilities / exposures are not identified, then the programme will in turn share those weaknesses, leaving the business at risk of a civil or criminal breach.
A 2018 New Zealand court case placed the starting point of a civil fine for failing to undertake an adequate risk assessment as $2 Million. The Department of Internal Affairs confirmed to the court it believed there should be a $2 million fine for failure in regards to risk assessment alone.
Businesses should take these warnings by AML Supervisors seriously.
Learn how to be AML Smart.
Click link below to join a free webinar.
AML360 is inviting CEOs and AML Compliance Officers to a complimentary webinar to learn how to develop and maintain a business risk assessment, how to manage ongoing compliance. The theme of the Webinar is ‘Work Smarter, Not Harder’. The webinar is suitable for all Asia Pacific jurisdictions.