New Zealand authorities have ordered TSB Bank Limited to pay civil penalties of over $3.5 million for non-compliance with the country’s AML/CFT Act of 2009.
TSB did not have adequate procedures and controls to ensure compliance with AML/CFT regulations. It also failed to review and update its AML/CFT program. Moreover, TSB did not assess the risks associated with its real estate operations. Finally, the bank also failed to pay attention to some specific countries where it does business in its 2017 risk assessment.
This case marks the first civil proceedings of the Reserve Bank of New Zealand under the country’s AML/CFT Act. Therefore, it also provides important guidelines to the authorities for handling such cases in the future.
Source: Reserve Bank of New Zealand