NZ regulator targets unit of CLSA Premium over money-laundering law

Top Eminent Healthcare

24/06/2020 06:58

June 24 (Reuters) - New Zealand's financial regulator has
launched civil proceedings against the local unit of Hong
Kong-based foreign exchange broker CLSA Premium Ltd  6877.HK 
for "multiple" alleged breaches of anti-money laundering laws. 
    The Financial Markets Authority (FMA) said CLSA Premium's
local unit failed to conduct sufficient customer due diligence,
end business relationships and report suspicious transactions
between 2015 and 2018 in accordance with the Anti-Money
Laundering and Countering Financing of Terrorism Act.
    "The regime has been in place since 2013 and CLSAP's alleged
breaches are serious so it is appropriate for the FMA to take a
strong regulatory response," Nick Kynoch, the FMA's general
counsel, said in a statement.
    CLSA Premium, majority-owned by Chinese state-backed broker
CITIC Securities  600030.SS , said on Wednesday it is seeking
legal advice but added its unit's licence will not being
impacted by the proceedings.
    The FMA said the representative transactions between April
2015 and November 2018 totalled nearly NZ$50 million ($32.3
million), adding the maximum penalty was NZ$2 million for each
alleged breach.
    Shares of CLSA Premium are set to resume trading after being
halted earlier ahead of the company's response.
($1 = 1.5473 New Zealand dollars)

 (Reporting by Shruti Sonal in Bengaluru; Editing by Lincoln
Feast.)
 ((Shruti.Sonal@thomsonreuters.com; Twitter: @shrutisonal26))