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RBNZ Files High Court Action Against ASB Over AML/CFT Breaches With NZ$6.73m Penalty Proposed

The High Court will weigh a joint recommendation after ASB cooperated and accepted seven failings.

Overview

  • The Reserve Bank of New Zealand lodged civil proceedings alleging breaches of core obligations under the Anti‑Money Laundering and Countering Financing of Terrorism Act.
  • ASB admitted liability for all seven causes of action identified by the regulator.
  • Both parties jointly recommended a NZ$6.73 million penalty, which remains subject to the court’s approval.
  • The alleged shortcomings date back to at least December 2019 and include weak customer due diligence and delays in reporting suspicious activity.
  • ASB is Commonwealth Bank of Australia’s New Zealand subsidiary, and the case now turns on the High Court’s decision.