The Auckland High Court fined derivatives and share trading platform Tiger Brokers $900,000 for several anti-money laundering violations.
FMA took the case. Financial institutions must identify customers and report "suspicious transactions" to authorities under anti-money laundering rules.
The laws restrict criminals from shifting money in the banking system.
The FMA said Tiger Brokers confessed failing to complete customer due diligence.
It also continued to engage with customers for whom it could not perform customer.
Due diligence checks as required by the Anti-Money Laundering and Countering Financing of Terrorism Act.
It also neglected to disclose suspicious activity to authorities and retain records as required by anti-money laundering rules.
The FMA stated Tiger's weaknesses caused $60.8 million in unchecked financial transactions in New Zealand between April 2019 and January 2020.
3768 consumers were not properly screened for money laundering.
The FMA said it failed to retain data for 69,705 to 126,230 customers and transactions worth $3.6 billion to $35.2 billion.