MR No. 2019 – 54
18 October 2019
The Financial Markets Authority (FMA) has issued a formal warning to a non-licensed derivatives issuer and forex provider, Circle Markets Limited, under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT).
Following a review of a sample of client files at an onsite monitoring review, the FMA found that Circle Markets Limited had failed to:
Circle Markets Limited has not disputed the FMA’s findings and its sole director (also the AML/CFT compliance officer) admitted he did not fully understand his AML/CFT obligations.
Circle Markets Limited is required to undertake a series of actions to ensure it complies with its obligations, including engaging an independent AML/CFT auditor to review its practices.
The company is required to provide the FMA with a report by March 2020. Failure to undertake the actions could result in civil or criminal enforcement action.
Liam Mason, FMA Director of Regulation said, “Circle Markets has demonstrated a general lack of understanding and knowledge of its AML/CFT obligations. However, it appears to be taking steps to ensure future compliance. For example, its sole director and an employee completed an AML/CFT training course earlier this year.
“Financial services firms ought to be aware of their AML/CFT obligations as this legislation has been in effect for some time. We have little patience for non-compliance. If a provider is unsure of their responsibilities, we encourage them to seek professional or legal advice.”
The warning was issued under section 80 of the Act.
Senior Adviser, Media Relations
021 945 323
Let us know what you think
Did you find what you were after?