Law firm fined for anti-money laundering breaches
24 April 2026
A Hamilton law firm has been fined $60,000 for Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act offences, following an investigation by the Department of Internal Affairs.
Foster & Milroy pleaded guilty to criminal breaches of the Act—including 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.
In imposing this fine, the Court considered Foster & Milroy’s size and financial capacity as well as the nature of the breaches.
“The offending in this case was serious as it was prolonged, intentional and systemic. As a law firm, Foster & Milroy’s partnership also had professional obligations to uphold the law, which they failed to do”, says Serge Sablyak, Director AML/CFT, Department of Internal Affairs.
“Between March 2022 and March 2025, Foster & Milroy repeatedly failed to meet their legal obligations under the Act.
“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.
“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,” Serge Sablyak says.
For more information about DIA’s role in the AML/CFT system visit: https://www.dia.govt.nz/AML-CFT-Homepage
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Media contact:
Media Desk
Department of Internal Affairs | Te Tari Taiwhenua
Mobile: +64 27 535 8639
Email: media@dia.govt.nz
