31/10/2025 -: “Serious compliance failures” - DIA enters into Enforceable Undertaking with Lexington Trust Services Limited

31 October 2025

The Department of Internal Affairs has accepted an enforceable undertaking from Lexington Trust Services Limited following Lexington's failures to meet its obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

In July 2023, the Department reviewed the Auckland-based company and found serious problems with how it was meeting its Anti-Money Laundering and Countering Financing of Terrorism obligations.

The review showed that Lexington Trust Services had not set up, followed, or maintained a compliant Anti-Money Laundering and Countering Financing of Terrorism programme. It also failed to report suspicious activity, as required by law. Because of these issues, the Department took formal action through an enforceable undertaking.

An enforceable undertaking is an agreement between the Department and a business following a breach of the Act. Under the enforceable undertaking, Lexington Trust Services Limited has agreed to not engage in any Money Laundering and Countering Financing of Terrorism captured activities without the Department's consent. This includes not offering services such as setting up companies, managing money or assets for clients, or helping with buying or selling businesses or property.

"We will take regulatory action against businesses that show a pattern of non-compliance" says Serge Sablyak, Director AML/CFT, Department of Internal Affairs.

"We use different tools to deal with businesses that don't follow the law. Enforceable undertakings help us ensure compliance without the time and the expense of the court process."

"Taking enforcement action isn't just about addressing past conduct, it's also about preventing future harm. It sends a clear message that compliance with anti-money laundering laws is not optional."

Lexington Trust Services Limited is not alleged to have been involved in money laundering or the financing of terrorism.

For more information about DIA's role in the Anti-Money Laundering and Countering Financing of Terrorism system and our regulatory approach visit: https://www.dia.govt.nz/AML-CFT-Homepage