The Department of Internal Affairs (DIA) has issued a formal anti-money laundering and countering the financing of terrorism (AML/CFT) warning to buy now pay later service provider Openpay Pty Ltd.
The DIA says Australian firm Openpay, which has been operating in New Zealand since 2013, failed to establish, implement, and maintain an AML/CFT programme, and failed to adequately monitor accounts and transactions over an extensive period.
The DIA, one of NZ's three AML/CFT Act supervisors alongside the Financial Markets Authority and Reserve Bank, acknowledges that Openpay isn't alleged to be involved in actual money laundering or the financing of terrorism.
“The issuing and publication of this formal warning demonstrates DIA’s willingness to take proportional action in response to non-compliance,” says Mike Stone, Director of DIA’s AML Group.
“It’s important to highlight our willingness to hold businesses to account, including offshore organisations that have AML/CFT obligations as part of their New Zealand operation.”
“We acknowledge Openpay is taking steps to establish, implement and maintain an AML/CFT programme. DIA will continue to closely monitor Openpay to ensure their compliance,” says Stone.
2 Comments
Anyone that pretends to be a fintech or any other kind of tech gets a free pass for a long time. A number of online insurance brokers are completely rorting the FAP compliance system by putting a disclaimer on their sites. You can't disclaimer yourself out of your compliance obligations. Either you registered as an FAP/ FSP or you didn't.
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