06 April 2020

Tiger Brokers (NZ) Limited

FMA issues warning to Tiger Brokers and six firms for anti-money laundering breaches

The Financial Markets Authority (FMA) has issued a formal warning to NZX-accredited broker Tiger Brokers (NZ) Limited for failing to have several adequate anti-money laundering protections in place.

The regulator has also privately warned six other businesses for their anti-money laundering practices, mainly due to late auditing of their systems and controls.

The FMA identified the issues with Tiger Brokers and the other companies as part of its ongoing monitoring of around 800 businesses that report to the regulator under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act.

In the FMA’s view, Tiger Brokers had failed to:

  • adequately conduct enhanced and ongoing customer due diligence where required.
  • adequately verify relevant customer identification documents.
  • obtain adequate source of fund or wealth information relating to high risk customers, and take reasonable steps to verify that information.
  • report suspicious activity to the relevant authorities within three working days after forming a suspicion.
  • take reasonable steps to determine whether a customer or any beneficial owner, is a politically exposed person.

The FMA concluded there were reasonable grounds to believe the business had contravened the Act.

Tiger Brokers must prepare and submit a plan to the regulator before 17 April 2020 describing how and when it will amend the issues to become compliant. It must then complete these actions by 30 September 2020 or it will face enforcement action.

View the formal warning issued to Tiger Brokers (NZ) Limited (FSP473106) for purposes of section 80 of Anti-Money Laudering and Countering Financing of Terrorism Act 2009