The Reserve Bank of New Zealand has filed civil proceedings in the High Court against ASB Bank Limited for alleged breaches of core requirements under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 dating from at least December 2019. The non-compliance set out in the proceedings relates to failures to establish, implement or maintain a fully compliant AML/CFT programme, adequately conduct ongoing and enhanced customer due diligence, report suspicious activities within statutory timeframes, and terminate business relationships as required. ASB has co-operated with the Reserve Bank and admitted liability for all seven causes of action; the parties will jointly recommend to the Court a penalty of NZD 6.73m, with the final determination remaining for the Court. The Reserve Bank stated it does not allege ASB was involved in money laundering or terrorism financing and will not comment further while the matter is before the High Court.
Reserve Bank of New Zealand 2025-12-15
Reserve Bank of New Zealand files High Court civil proceedings against ASB Bank for AML/CFT Act breaches and proposes NZD 6.73m penalty
The Reserve Bank of New Zealand has initiated civil proceedings against ASB Bank Limited for breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, with ASB admitting liability and both parties recommending a penalty of NZD 6.73 million. The Reserve Bank clarified that it does not allege ASB's involvement in money laundering or terrorism financing, and the final penalty decision is pending in the High Court.