Auckland-based foreign exchange and money remittance company Qian DuoDuo Limited, which traded under the name Lidong Foreign Exchange, has been convicted and fined $1.125 million for failing to report suspicious activities and to submit prescribed transaction reports.
An investigation conducted by the Department of Internal Affairs found that between June 2018 and September 2019, Qian DuoDuo Limited failed to report 197 international transactions to China, totalling over $19.14 million. Of these transactions, 26 involved objectively suspicious activities with a total value of $4.72 million, while 171 involved prescribed transactions with a total value of $14.42 million.
The transactions were undertaken by two individuals, Xiaoyu Lu and Musabayoufa Fuati, who have both been convicted of criminal offending. Mr Fuati was convicted of structuring transactions to evade anti-money laundering laws, while Mr Lu was convicted of providing unregistered financial services, as well as multiple counts of money laundering. Both Mr Fuati and Mr Lu pleaded guilty to their charges.
“We take offences under the Act very seriously. Suspicious transactions have the potential to be linked to money laundering or terrorist financing activities.” says Serge Sablyak, Director AML/CFT, Department of Internal Affairs.
“In the case of Qian DuoDuo Limited, there was a history of non-compliance. In 2017, the Department took civil action against the company following non-compliance with its obligations, and the High Court confirmed multiple breaches of the company’s legal obligations.”
Qian DuoDuo Limited has appealed the District Court’s decision to the High Court.