Money laundering flaw

Buy now, pay later lender Openpay has been given a formal warning for weak anti-money laundering systems. The Department of Internal Affairs Te Tari Taiwhenua said it had issued a formal warning to the Australian company for failing to establish, implement, and maintain an antimoney laundering programme. The company also failed to adequately monitor accounts and transactions over an extensive period, the department said. Financial services companies like banks and payments operators have a duty under the Anti-Money Laundering and Countering Financing of Terrorism Act to ensure they are not used to move money illegally. Mike Stone, director of DIA’s antimoney laundering systems, said Openpay was not alleged to be involved in money laundering or the financing of terrorism. He said DIA supervised a range of businesses which had to comply with anti-money laundering laws. Openpay has been operating in New Zealand since 2013.