Tiger Brokers fined $900,000 for money laundering

Singapore-based online brokerage Tiger Brokers recently faced a financial penalty of 900 000 $ in New Zealand. This sanction comes following violations of the laws against money laundering and the financing of terrorism.

Tiger Brokers admitted failing to carry out proper customer checks, failing to reportsuspicious activities and failing to keep adequate records. These shortcomings were highlighted during an investigation carried out by the Financial Markets Authority (FMA).

Between April 2019 and January 2020, nearly 3,768 customers were involved in transactions with a total value of almost $60.8 million, carried out without the necessary checks and verifications. These violations of record retention rules by Tiger Brokers highlight its weak approach to compliance.

The Financial Markets Authority had already sent a formal warning to the company in 2020 due to the seriousness of these offenses. However, she ultimately had to appeal to the High Court to establish the amount of the fine imposed.

Margot Gatland, head of enforcement, stressed that the Financial Markets Authority was not claiming that money laundering or terrorist financing activities had taken place. Nevertheless, Tiger Brokers clearly failed to meet their core responsibilities.

This court decision highlights the importance of these laws in preserving the integrity of New Zealand's financial markets. Non-compliance is considered a serious matter.

It is also important to emphasize that foreign subsidiary operations in New Zealand cannot rely on third parties or parent companies to fulfill their compliance obligations. Each entity must take responsibility for complying with applicable rules and regulations.

This fine imposed on Tiger Brokers for violations related to the money laundering sends a strong message to all financial institutions. Vigilance and compliance with anti-money laundering and anti-terrorism financing laws are essential to maintaining integrity and trust in the financial system.

Source: Radio New Zeeland