The Reserve Bank has today issued a formal warning to Aotearoa Credit Union under section 80 of the Anti-Money Laundering and Countering Financing of Terrorism Act.
As the supervisor of non-bank deposit takers for compliance with their Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) obligations, the Reserve Bank has reasonable grounds to believe that between 30 June 2013 and 2 February 2015, Aotearoa Credit Union did not meet the following obligations:
- The obligation to conduct ongoing customer due diligence and account monitoring (section 31(2) of the AML/CFT Act);
- The requirement to report suspicious transactions in the prescribed form, within three working days of a suspicion being formed (section 40 of the AML/CFT Act);
- The obligation to comply with customer due diligence requirements, including ongoing customer due diligence and account monitoring (section 57(c) of the AML/CFT Act); and
- The requirement to have adequate and effective procedures, policies and controls to monitor and manage compliance with the AML/CFT programme (section 57(l) of the AML/CFT Act).