Formal warning for buy now, pay later service

Buy now, pay later operator Openpay has been given a formal warning for failing to comply with anti-money laundering laws.

The Department of Internal Affairs says Openpay, an Australian listed company which has operated in New Zealand since 2013, failed to establish, implement and maintain an anti-money laundering or counter-financing of terrorism (AML/CFT) programme and failed to adequately monitor accounts and transactions over an extensive period.

The company is not alleged to be involved in money laundering or the financing of terrorism.

“The issuing and publication of this formal warning demonstrates DIA’s willingness to take proportional action in response to non-compliance,” said Mike Stone, director of the department’s AML group.

The department’s regulatory responses can range in severity and consequence, from formal warnings through to criminal prosecution.

Stone said Openpay was taking steps to establish and implement an AML/CFT programme and it would continue to monitor the company to ensure its compliance.