Hamilton law firm Foster & Milroy have been fined $60,000 for Anti-Money Laundering and Countering Financing of Terrorism (AMT/CFT) Act offences.
Department of Internal Affairs AMT/CFT Director Serge Sablyak described the offending as "prolonged, intentional and systemic".
"Between March 2022 and March 2025, Foster & Milroy repeatedly failed to meet their legal obligations under the Act," said Sablyak.
It admitted failures to undertake a compliant risk assessment, to establish, implement, or maintain an AML/CFT programme, and to maintain proper records, and wilfully obstructing an AML/CFT supervisor in the exercise of its powers.
"Foster & Milroy also wilfully obstructed the Department's investigators from exercising their statutory powers by refusing to respond to our notices and only responding to parts of others," said Sablyak.
“Businesses are our first line of defence against money laundering which is why it is so important for regulated entities to meet the Act’s obligations. Where there is a pattern of non-compliance or deliberate attempts to obstruct or mislead, we take decisive action, whether through civil enforcement or criminal prosecution.
“Criminals with money laundering in mind target businesses they believe have weak systems they can exploit. Law firms are particularly vulnerable because they are trusted, and criminals leverage that trust by using their broad range of services to conceal the proceeds of their offending. That’s why failures to adhere to, or implement, AML/CFT obligations can have far-reaching consequences."
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