The Reserve Bank of New Zealand said the High Court has imposed a NZD 6.731 million civil pecuniary penalty on ASB Bank Limited for seven breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. The case followed proceedings the central bank filed in December 2025 and, according to the Reserve Bank, the sanction is the largest AML/CFT penalty ever imposed by a New Zealand court. The breaches related to prolonged deficiencies in ASB’s transaction monitoring system and wider AML/CFT programme over about six years. ASB cooperated with the investigation and admitted failures in customer due diligence, risk management and compliance monitoring controls, ongoing due diligence for foreign trust customers, suspicious activity reporting within required timeframes, enhanced customer due diligence, and terminating business relationships when required. The Reserve Bank said weak transaction monitoring and reporting can deprive intelligence agencies of time-sensitive information needed to detect and deter money laundering and terrorism financing.
Reserve Bank of New Zealand2026-06-09
Reserve Bank of New Zealand secures NZD 6.731 million High Court AML/CFT penalty against ASB for seven breaches
The Reserve Bank of New Zealand announced that the High Court has imposed a NZD 6.731 million civil pecuniary penalty on ASB Bank Limited for seven breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, the largest AML/CFT penalty imposed by a New Zealand court. The breaches stemmed from prolonged deficiencies in ASB’s transaction monitoring and wider AML/CFT programme, including failures in customer due diligence, risk management and compliance monitoring, ongoing due diligence for foreign trusts, suspicious activity reporting, enhanced due diligence, and terminating business relationships when required.