MSL Capital Markets Limited

ADDRESS: Level 3, Wakefield House, 90 The Terrace, Wellington
REASON FOR WARNING: MSL failed to perform its audit of its AML/CFT risk assessment and AML/CFT programme by 31 October 2014 and to provide a copy of the audit report to us.
UPDATED 14 April 2015: MSL has now provided us with a copy of the audit of its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) risk assessment and AML/CFT programme - within the timeframes agreed between the parties.
OTHER INFORMATION: We have issued a formal warning to MSL Capital Markets Limited - FSP225586 (MSL) under section 80 of the Anti-Money Laundering and Countering Financing of Terrorism Act (the Act).

Under section 59(2) of the Act, we required MSL to perform an audit of its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) risk assessment and AML/CFT programme by 31 October 2014 and to provide us with a copy of the audit by 28 November 2014. MSL failed to perform its audit and provide a copy of the audit report to us.

The Act requires a reporting entity to ensure its risk assessment and AML/CFT programme are audited every two years or at any other time at the request of the relevant AML/CFT supervisor.

Independent audits are an essential component of complying with the Act and help ensure that reporting entities have, and will continue to have, robust systems and processes in place to detect and deter money laundering and the financing of terrorism.

We expect every reporting entity that it supervises to have an audit completed every two years or when it is requested. A copy of the audit report must also be provided when specifically requested, as required under section 59(7) of the Act.

We note that the firm has now taken action to undertake the audit and has committed to providing us with a copy of the audit report.