Reserve Bank launches Enforcement Department
This page contains information on Reserve Bank launches Enforcement Department from the May 2021 Financial Stability Report.
In March 2021, the Reserve Bank launched a new standalone Enforcement Department to promote confidence in compliance across regulated sectors. The department will investigate breaches of regulatory requirements, provide input to supervisors on compliance matters, and recommend enforcement actions where appropriate.
The Enforcement Department is operationally separate from the Reserve Bank’s Supervision Department, but the two will work closely together to achieve the Reserve Bank’s compliance goals of incentivising and managing prudent behaviour and credibly deterring non-compliance. The two departments operate within the Reserve Bank’s Financial Stability Group.
The Enforcement Department will support the Reserve Bank’s more intensive supervisory and enforcement approach, helping the Reserve Bank to promote a sound and efficient financial system built on integrity, innovation, and inclusion.
This work aligns with the Reserve Bank’s Supervision and Enforcement strategic priority of ensuring compliance of financial institutions with coherent, robust legislation, and regulatory frameworks. This is to be supported and informed by sophisticated analytical and decision-making technology and tools.
The new department is developing the Reserve Bank’s enforcement framework, including establishing an Enforcement Committee that will oversee enforcement actions for repeated and serious breaches of regulatory requirements. The new enforcement framework will be transparent and public.
The department will work closely with the different Supervision teams across the range of regulated entities in the banking, insurance, and AML/ CFT sectors in tracking compliance breaches and applying an escalated response to ongoing failures.