New Zealand: TSB Bank pinged $3.5m for money laundering law breaches

TSB Bank has been ordered by the court to pay $3.5 million in civil penalties after it was found to have breached anti-money laundering laws.

The High Court at Wellington today released its decision after a statement of claim filed by the Reserve Bank in May.

The penalties were based on TSB’s acceptance that it did not have adequate and effective procedures, policies and controls for monitoring and managing compliance with its AML/CFT programme; review and maintain its AML/CFT programme; conduct a risk assessment in respect of its real estate operations or have regard to certain countries it deals with when reviewing its 2017 risk assessment.

Reserve Bank Deputy Governor Geoff Bascand said the penalties reflected TSB’s failure to comply with fundamental elements of the AML/CFT Act.

“While TSB has now embarked on a remediation programme, these proceedings were an escalated regulatory response by the Reserve Bank to ongoing non-compliance by TSB following a formal warning issued to TSB in 2016.”

Bascand said the AML/CFT Act came into effect eight years ago. “We expect firms to be aware of, and to comply with, their obligations.”

The case is the first time the Reserve Bank has taken civil proceedings under the AML/CFT Act.

The article has been summarised and the original full article can be found at

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