FMA adds the forex provider Circle Markets Limited to its warning list

fma warning

New Zealand Financial Markets Authority (FMA) has issued a warning on its official website 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).

The regulator found that Circle Markets Limited had failed to

  • adequately verify identity information for some customers;
  • obtain additional identity requirements;
  • take reasonable steps to determine whether a customer or any beneficial owner, is a politically exposed person.

The company has also failed to conduct adequate ongoing customer due diligence for some customers and undertake account monitoring.

According to the FMA, the company’s sole director (also the AML/CFT compliance officer) admitted he did not fully understand his AML/CFT obligations.

Liam Mason, FMA Director of Regulation commented:

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.

More recent warnings from the regulator can be seen below:

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