The Financial Markets Authority of New Zealand filed a lawsuit against Hong Kong-headquartered CSLA over breaches of anti-money-laundering and terrorism financing laws.
CLSA Premium New Zealand (CLSAP NZ) was accused of failing on multiple occasions to conduct sufficient customer due diligence, report suspicious transactions and keep records, according to the Financial Markets Authority (FMA).
The transaction occurred between April 2015 and November 2018, totaling NZ$50 million ($32 million). Each breach could yield a maximum penalty of NZ$2 million, according to the FMA.
«The anti-money-laundering legislation is a cornerstone to protecting the integrity of New Zealand’s financial system and it’s imperative that financial services firms ensure they are compliant,» said Nick Kynoch, the FMA’s general counsel, in a press release. «CLSAP NZ needs to be held to account and our approach sends an important message of deterrence to the industry.»
CLSAP NZ was formerly known as KVB Kulun New Zealand before it was acquired by Citic Securities through a $100.6 million acquisition of a majority stake in 2015 and renamed.
