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ASB fined NZ$6.73m for breaches of money laundering law

New Zealand's Reserve Bank (RBNZ) has fined ASB Bank NZ$6.73 million for systemic failings in customer due diligence under the country's anti-money-laundering law. The decision is the second-largest such penalty imposed on a private bank in the country. ASB accepted all findings.

Wellington harbour on a grey overcast morning
Wellington harbour on a grey overcast morningPhoto: Petra Reid / Pexels
RNZ Business1 h agoCBA.AX
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New Zealand's Reserve Bank (RBNZ) said it had imposed a NZ$6.73 million fine on ASB Bank after an anti-money-laundering and counter-financing-of-terrorism (AML-CFT) review covering 2018-2023. RBNZ Deputy Governor Christian Hawkesby said systemic shortcomings had been identified in customer due diligence, monitoring of high-risk transactions and suspicious-transaction reporting.

ASB Bank CEO Vittoria Shortt said the bank accepted all findings and had already launched an AML-CFT investment programme worth about NZ$30 million. Shortt said the deficiencies did not amount to deliberate misconduct but arose from operational errors. ASB stressed that customers had not suffered direct losses.

For ASB, a subsidiary of the Commonwealth Bank of Australia (CBA), the decision is the second-largest penalty ever imposed on a private bank under the country's AML regime. Finance Minister Nicola Willis said a parliamentary review of the implementation of AML legislation would be accelerated. ASB shares trade through CBA in Wellington-linked sessions, where CBA declined 0.4%. Not investment advice.

BankingRegulationCBA.AXAustralia-PacificRNZ Business
Source: RNZ Business
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This article is an AI-curated summary of the original story published by RNZ Business. The illustration is a stock photo by Petra Reid from Pexels and is not from the original story.

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