The Department of Internal Affairs (DIA) has issued a formal warning to a money remitter for breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act).
Mr Javad Hajiebrahimi, trading as Bumbusly, operates a money remittance service in Christchurch. An on-site inspection in August 2024 found that Bumbusly failed to establish, implement and maintain an Anti-Money Laundering and Countering Financing of Terrorism programme and to undertake a compliant risk assessment, as required by the Act. DIA also found that Bumbusly failed to adequately conduct customer due diligence, comply with account monitoring obligations including failing to report transactions to the Police’s Financial Intelligence Unit, and keep adequate records.
“We take seriously any failure to comply with obligations under the Act, as any person or business that is subject to the Act can be exploited by criminals to launder the proceeds of crime and to finance terrorism if robust processes are not maintained,” said Serge Sablyak, Director AML/CFT.
“Bumbusly must take immediate action to comply with its anti-money laundering obligations. The Department will continue to monitor Bumbusly’s compliance and will consider further enforcement action if necessary.”
Bumbusly is not alleged to be directly involved in money laundering or the financing of terrorism. However, the Act requires financial institutions such as money remitters to have processes in place to detect and deter money laundering and terrorist financing, and to protect their businesses from misuse.
“The Department’s role as an anti-money laundering supervisor ensures that New Zealanders can trust the financial systems they use every day. This helps safeguard our economy from being used to fund illegal activities in New Zealand and globally, and helps keep New Zealand a good place to do business.”