Bank is compelled to review its procedures, policies, and controls moving forward
The Reserve Bank of New Zealand (RBNZ) has cautioned banking giant Westpac for failing to report prescribed transactions required by law.
RBNZ said in a statement that it has “reasonable grounds to believe that Westpac Banking Corporation has engaged in conduct that constitutes a civil liability act under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT).”
Specifically, RBNZ said that Westpac had designed and configured its prescribed transaction reporting (PTR) systems in a way that “failed to detect and report all eligible international wire transfers over the requisite threshold.”
Because of this failure, RBNZ has required Westpac to “review the procedures, policies, and controls within its AML/CFT programme for reporting prescribed transactions, including its systems assurance processes” to ensure compliance.
The central bank also warned Westpac that if it continued to engage in conduct that constitutes a civil liability act, or does not take the actions required, civil or criminal enforcement action may be taken.
This includes civil penalties of up to $200,000 in the case of an individual and $2 million in the case of a body corporate; and criminal penalties of imprisonment for up to two years, or a fine of up to $300,000 in the case of an individual and $5 million in the case of a body corporate.
