Kiwibank has received a formal warning from the Reserve Bank of New Zealand (RBNZ), relating to failure to meet some of the requirements of the Anti-Money Laundering/Countering Financing of Terrorism Act which came into effect in 2013.
The RBNZ found that during the period June 2013 to June 2014, Kiwibank did not always have fully compliant procedures in relation to Customer Due Diligence requirements of the Act.
Kiwibank accepts that it did not meet some of the requirements during the period and has taken steps to remedy the issues identified. It has comprehensive compliance programmes in place and is committed to ensure its AML programme operates effectively to prevent any attempted laundering of money.
The following is the notification from the Reserve Bank:
Enforcement action under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act)
The Reserve Bank of New Zealand (RBNZ) has today issued a formal warning to Kiwibank Limited (Kiwibank) under section 80 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act). As the supervisor of banks for compliance with their Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) obligations, the RBNZ has reasonable grounds to believe that for various periods of time between 30 June 2013 and June 2014, Kiwibank did not fully meet all the requirements in respect to the following customer due diligence (CDD) obligations under the Act:
TAs a result Kiwibank’s AML/CFT programme did not, during the specified period, fully include adequate and effective procedures, policies, and controls for complying with its CDD requirements as required by section 57(c).
The RBNZ notes that since June 2014, Kiwibank has taken remedial action to address these matters.
For further information: Bruce Thompson, Communications Manager (04) 460 6831