Enforcement action under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 - Kiwibank Limited Warning
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:
- did not always conduct CDD on the beneficial owner of a new customer and any person acting on behalf of a new customer (as required under sections 14(a) and 11(1)(b) and (c));
- did not collect addresses of customers performing occasional transactions (as required under section 15(d));
- did not always conduct screening of politically exposed persons (as required under section 26);
- did not always take reasonable steps to verify information relating to the source of funds or the wealth of the customer (as required under section 24(1)(b)); and
- did not consider terminating customers’ accounts in response to its ongoing non-compliance with section 24(1)(b) (as required under section 37).
As 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.