Reserve Bank filed high court proceedings against TSB

The Reserve Bank of New Zealand has filed an invoice with the High Court against TSB Bank Limited for alleged violations of the 2009 Anti-Money Laundering and Anti-Terrorism Financing Act.

Thursday, May 27, 2021 1:17 pm

Matthew Martin

However, the RBNZ does not claim that the TSB is involved in money laundering or terrorist financing, which represents a stronger regulatory response to the TSB’s non-compliance with legal aspects. I will.

Jeff Bascand, RBNZ’s Vice President and General Manager of Financial Stability, said the TSB is working with the Reserve Bank on claims and acknowledges responsibility.

The Reserve Bank and TSB have submitted an agreed statement of facts to the High Court.

Since its entry into force on June 30, 2013, TSB has been a registered bank, a reporting agency under the Anti-Money Laundering and Anti-Terrorism Financing Act (AML / CFT).

In 2016, TSB received a formal warning from the Reserve Bank for non-compliance with AML / CFT legislation. In 2019, the Reserve Bank confirmed that TSB continued to underestimate and effectively comply with AML / CFT obligations.

“I’m disappointed that the TSB didn’t fully respond to the first formal warning. We are now obliged to go through this High Court procedure,” says Baskand.

The Reserve Bank is seeking fines for four categories of violations.

-There are no appropriate and effective procedures, policies, and controls for monitoring and managing compliance with AML / CFT programs.
-TSB AML / CFT program review and maintenance failure.
-Failure to carry out risk assessment for real estate business.
-When considering the 2017 risk assessment, we did not consider the specific countries with which we trade.

The issue is currently being heard in the High Court, so the Reserve Bank will not comment further until the court proceedings are complete.

tag: AML court RBNZ TSB

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Reserve Bank filed high court proceedings against TSB

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