ASIC cancels Everest Asset Management's AFSL

ASIC has canned the AFS Licence (AFSL) of the asset management firm linked to a massive money-laundering operations.

Everest Asset Management, which was licensed to service wholesale clients, will no longer be operational.

ASIC said it revoked the AFSL because Everest failed to prepare and lodge the required financial statements and audit reports.

ASIC also believes that Everest will likely contravene its obligations as an AFS licensee in the future. Under the AFSL, Everest had authority to advise and deal in managed investment schemes.

"Under the Corporations Act, ASIC may suspend or cancel an AFS licence if a licensee fails to meet its general obligations under s912A. This includes the obligation to comply with financial services laws, including the requirement to lodge financial statements annually with ASIC," the regulator said.

Everest is intertwined with the Australian Federal Police's (AFP) investigation into money-laundering scheme under the code name "Operation Avarus-Nightwolf".

The AFP alleges that seven syndicate members laundered nearly $229 million via the Changjiang Currency Exchange's criminal enterprise with accomplices recruiting within the financial sector.

The activity also enabled syndicate members to financially benefit from the proceeds of crime and tax evasion between 2020-23.

The syndicate allegedly co-mingled legal and illicit funds which enabled the transfer up to $100 million a day for customers in Australia and throughout the world, with the volume of transfers masking the laundering of tainted funds, AFP assistant commissioner Stephen Dametto.

The Criminal Assets Confiscation Taskforce has restrained property and other assets that include houses and investment properties, luxury vehicles, and other high-value luxury property items bought with the tainted funds.

This resulted in former officers and responsible managers of Prospero and a current officer of Everest being charged with money-laundering offences in October 2023.

Everest can go to the Administrative Appeals Tribunal to review ASIC's decision.