The Reserve Bank of New Zealand - Te Pūtea Matua has filed civil proceedings in the High Court against ASB Bank Limited for breaches of core requirements under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009 from at least December 2019.
ASB's non-compliance relates to its failures to:
- establish, implement, or maintain an AML/CFT programme that complied in all respects with the requirements of the AML/CFT Act;
- adequately conduct ongoing customer due diligence;
- report suspicious activities within the timeframe provided in the AML/CFT Act;
- conduct enhanced customer due diligence; and
- terminate business relationships as required by the AML/CFT Act.
Acting Assistant Governor of Financial Stability Angus McGregor says this action is an important reminder to industry that serious non-compliance with the AML/CFT Act is unacceptable.
The AML/CFT Act has been in place for well over a decade now and the Reserve Bank expects banks to have the systems and resources in place to be fully compliant with these requirements" Mr McGregor says.
Banks who do not comply increase risk for New Zealanders and our financial system. Non-compliance with account monitoring and reporting requirements denies New Zealand law enforcement and intelligence agencies access to crucial time-sensitive information that is needed to detect and deter criminal activity.
ASB has co-operated with the Reserve Bank and has admitted liability for all seven causes of action.
The parties have agreed to jointly recommend to the Court that a penalty of $6.73m is appropriate in this case, though the final determination is for the Court.
The enforcement response promotes the AML/CFT Act's purposes, which are to detect and deter money laundering and the financing of terrorism; maintain and enhance New Zealand's international reputation; and contribute to public confidence in the financial system.
