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CLSAP (formerly KVB Kunlun) admits to anti-money laundering breaches

Page last updated: 06 May 2021

Media Release
MR No. 2021 – 18

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.

ENDS

About the AML/CFT Act

The AML/CFT Act enables the FMA to take action against a reporting entity. The FMA is one of three supervisors under the AML/CFT Act, along with the Reserve Bank of New Zealand and Department of Internal Affairs. The FMA currently supervises around 800 reporting entities that are required to comply with the Act. Not all are licensed by the FMA.

Under the Act, reporting entities are required to have a written risk assessment, have a compliance programme, and designate a compliance officer to administer and maintain the programme.

Media contacts:

Andrew Park
FMA Media Relations Manager
andrew.park@fma.govt.nz
021 220 6770

Campbell Gibson
FMA Senior Adviser, Media Relations
campbell.gibson@fma.govt.nz
021 945 323