In June 2019, the Reserve Bank of New Zealand requested two reports from ANZ Bank New Zealand Limited (ANZ) after issues were identified with ANZ’s Director Attestation and Assurance Framework and the bank’s compliance with Reserve Bank capital adequacy requirements.
In December 2019, the Reserve Bank received the first report on ANZ’s Director Attestation and Assurance Framework. After the first report, the Reserve Bank ordered ANZ to hire an external party to verify that the bank has implemented all recommendations from the first report by 2021.
The Reserve Bank received the second report in April 2020. This report evaluated ANZ’s compliance with the Reserve Bank’s capital adequacy requirements. The report found that ANZ lacked a rigorous AML framework which is why it failed to detect compliance issues. The Reserve Bank is still working with ANZ to address identified areas of non-compliance.
The Reserve Bank is also investigating the compliance of two banks with the AML/CFT Act. This includes TSB Bank Limited, which has deficiencies in its risk assessment and AML/CFT compliance program.
Source: Reserve Bank of New Zealand