Qian DuoDuo Limited fined $1.125 million for failing to report over $19 million worth of transactions

5 June 2025

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 value of these transactions represented just over 19 per cent of the gross value of all transactions undertaken by Qian DuoDuo Limited between 1 July 2018 and 30 June 2019.

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.

In sentencing Qian DuoDuo Limited, the District Court found that the company failed to carry out adequate customer due diligence on the source of Mr Fuati’s and Mr Lu’s funds, relying on questionable verification documents despite recognising its operations were at high risk of being used to launder money.

“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.

“Prescribed transaction reports are vital in alerting law enforcement to suspected offenders and make money laundering and terrorist financing difficult to hide.”

“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.”

“When financial institutions, including money remitters, continue to fail to meet their obligations under the Act, the Department can and will take action.”

Qian DuoDuo Limited has appealed the District Court’s decision to the High Court.

All convictions were for failing to meet obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

For more information about DIA’s role in the AML/CFT system and our regulatory approach visit: https://www.dia.govt.nz/AML-CFT-Homepage.

A copy of the District Court’s decision can be found here: https://www.dia.govt.nz/diawebsite.nsf/Files/The-Department-Of-Internal-Affairs-V-Qian-Duo-Duo-Limited/$file/The-Department-Of-Internal-Affairs-V-Qian-Duo-Duo-Limited-Reserved-Decision-Of-Judge-P-Winter.PDF

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Media contact:

Media Desk
Te Tari Taiwhenua Department of Internal Affairs
Mobile: +64 27 535 8639
Email: media@dia.govt.nz