Six Auckland law firms have been formally warned by the Department of Internal Affairs (DIA) after failing to complete mandatory independent anti-money laundering audits, in what regulators describe as the first coordinated enforcement action of its kind.
The public warnings form part of a wider sweep involving ten reporting entities, including a real estate agency, an accounting firm, a non-bank lender, and a payment provider.
The law firms named by the regulator are:
- Singhs Lawyers
- Robertsons Associates Limited
- Mangere Law Limited
- Castleview Law Limited
- FC Law Partners
- Woodroffe Lawyers
According to the DIA, each of these firms failed to undertake a required independent audit of its AML/CFT programme and risk assessment on at least two occasions. Under the Act, reporting entities are legally required to complete an independent audit at least every three years. These specific compliance gaps were detected as part of the department’s 2026 thematic review.
Acting AML/CFT Director Laura Olsen said the action marked the first time the department had issued multiple coordinated formal warnings for audit failures.
“Today’s action signals a clear expectation that reporting entities must comply with their legal obligations,” Olsen said. “This isn’t compliance for compliance’s sake. Independent audits help us check whether a reporting entity’s AML/CFT programme actually works, identify gaps, and ensures compliance isn’t just paper-based.”
The warnings come just weeks before the DIA officially assumes responsibility as New Zealand’s sole AML regulator on 1 July 2026, stripping away the previous three-supervisor model (which included the Reserve Bank and the Financial Markets Authority) under recent legislative overhauls.
Importantly, the department has not alleged that any of the firms were involved in active money laundering or terrorist financing. The action relates strictly to systemic compliance failures rather than criminal conduct.
The move signals a tougher approach from regulators as scrutiny intensifies across professional services. Lawyers have been subject to AML obligations since Phase 2 of the Act took effect for the profession in 2018. They are required to maintain robust risk assessments, customer due diligence (CDD) procedures, and regular independent reviews of their compliance frameworks.
The latest enforcement action serves as another reminder that AML compliance has moved well beyond a box-ticking exercise. As the DIA prepares to become the country’s single supervisor next month, firms that treat audits as an administrative nuisance may find the regulator has rather less patience than they do.
Why it matters: With the Department of Internal Affairs taking over as New Zealand’s sole AML watchdog next month, the message to the legal sector is clear: compliance failures that once attracted quiet, private reminders are increasingly being met with public warnings and the subsequent reputational risk.
