June issue

Kia ora

This edition of In the Know highlights why AML/CFT obligations matter — and what’s at stake when they’re not met. From a $1.125 million fine to a formal warning, recent enforcement actions serve as a reminder that non-compliance can have serious consequences. Financial crime is evolving, and our system must keep pace. The Department's enforcement activity, which is ongoing, is focused on non-compliance that is serious, persistent, and either willful or seriously negligent. 

With annual reporting opening on 1 July, it’s a timely reminder for reporting entities to review their AML/CFT programme and risk assessment to ensure they reflect current business operations and obligations under the Act.  

More broadly, whether it’s maintaining strong reporting practices, staying across international developments like FATF updates, or building capability through goAML training, every action plays a part in strengthening the integrity of our AML/CFT system.

Thank you for the ongoing role you play in building a stronger, more resilient AML/CFT framework in New Zealand.

Ngā mihi,
Serge Sablyak
Director AML/CFT

Annual reporting opens 1 July

From 1 July 2025, reporting entities supervised by the Department of Internal Affairs will be able to file their AML/CFT annual report – a legal obligation under the AML/CFT Act. 

The report must be submitted via AML Online by 31 August 2025 for the reporting period 1 July 2024 to 30 June 2025. 
 
Further guidance and correspondence will be shared with reporting entities so keep an eye out on your inbox and our website for updates. 

For more information, visit the link below:
 

FATF plenary update

The Financial Action Task Force (FATF) has updated its list of jurisdictions under increased monitoring — commonly referred to as the “grey list” — following its June 2025 plenary. 

Jurisdictions on the grey list are working with FATF to address deficiencies in their AML/CFT regimes, and reporting entities should stay informed about these changes as part of their risk-based approach. 

Read the full update on our website:
 

$1.125M fine for AML/CFT failures

Qian DuoDuo Limited (trading as Lidong Foreign Exchange) has been convicted and fined $1.125 million for failing to report nearly 200 suspicious and prescribed transactions — worth over $19 million — between 2018 and 2019. 

The District Court found serious gaps in customer due diligence and a reliance on questionable verification documents, despite clear money laundering risks. This follows earlier civil action taken in 2017 for multiple breaches. 

This case reinforces that meeting AML/CFT obligations requires vigilance, sound processes and action – no matter the size of your business. 

Read the full press release below:

Formal warning

A money remitter has been issued a formal warning for multiple breaches of the AML/CFT Act. 

This case is a reminder that AML/CFT responsibilities apply to both businesses and the people behind them. Without robust processes, reporting entities can be exploited to launder criminal proceeds or finance terrorism — and that’s why failures are taken seriously.  

Click the link below to read the full article:

Free goAML training in Auckland & Christchurch

The NZ Police Financial Intelligence Unit (FIU) is running free goAML training sessions in Auckland and Christchurch next month. These two-hour sessions will walk you through the goAML system and how to submit Suspicious Activity Reports (SARs) and Prescribed Transaction Reports (PTRs), with a live demonstration and time for questions. 

If you’re new to reporting or just need a refresher, this is a great opportunity to build confidence and capability. And with recent convictions highlighting the consequences of poor reporting practices, there’s no better time to make sure you’re getting it right. 

For more information and session times, click the button below: