The Reserve Bank of New Zealand has taken legal action against TSB Bank Limited for acknowledged breaches of the country’s AML/CFT Act 2009. This action comes after the discovery of TSB’s non-compliance with New Zealand’s AML/CFT Act.
TSB had previously received a formal warning from the Reserve Bank of New Zealand in 2016 for failure to comply with the AML/CFT Act. The Reserve Bank had identified similar deficiencies in 2019 too. With its legal action, the Reserve Bank of New Zealand is seeking pecuniary penalties for non-compliance in four areas.
TSB lacked adequate and effective procedures and controls to monitor its compliance with the AML/CFT Act. It also failed to review and maintain its AML/CFT program. TSB further failed to perform a risk assessment of its realty operations. Moreover, it did not pay attention to known high-risk countries during its 2017 risk assessment.
Source: Reserve Bank of New Zealand