Anti-money laundering breaches alleged

The Financial Markets Authority (FMA) has filed civil proceedings against investment platform InvestNow, alleging breaches of the AML/CFT regime.

The mischief, the regulator claims, involves “inadequate and in some respects systemic” failures in its customer due diligence processes between the end of 2018 and the end of 2022.

InvestNow has $2 billion in client funds under management across its managed funds, term deposits and KiwiSaver portfolios and more than 30,000 customers.

The FMA is seeking a declaration from the court that InvestNow committed the breaches and that a pecuniary penalty should be paid to the Crown.