{"id":448709,"date":"2026-05-28T01:55:08","date_gmt":"2026-05-28T01:55:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/448709\/"},"modified":"2026-05-28T01:55:08","modified_gmt":"2026-05-28T01:55:08","slug":"reserve-bank-seeks-1-4m-penalty-from-the-co-operative-bank-over-anti-money-laundering-breaches","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/448709\/","title":{"rendered":"Reserve Bank seeks $1.4m penalty from The Co-operative Bank over anti-money laundering breaches"},"content":{"rendered":"
\u201cThis enforcement response promotes the AML\/CFT act\u2019s purposes, which are to detect and deter money laundering and the financing of terrorism; maintain and enhance New Zealand\u2019s international reputation; and contribute to public confidence in the financial system,\u201d McGregor said.<\/p>\n
McGregor said the action reinforced that prolonged and systemic failures to meet core AML obligations were \u201cserious and unacceptable\u201d.<\/p>\n
\u201cThe RBNZ expects all banks to have appropriate systems and resources in place to actively monitor customer accounts and transactions, supported by fit for purpose testing and assurance to fully comply with the requirements of the act.<\/p>\n
\u201cThese measures are essential to identify and mitigate potential money laundering or terrorism financing risks in a timely manner.\u201d<\/p>\n
The Co-operative Bank chief executive Mark Wilkshire said the bank had taken steps to strengthen its systems and controls.<\/p>\n
The Co-operative Bank has admitted liability for all three causes of action, and accepted responsibility for the breaches.<\/p>\n
The Co-operative Bank chief executive Mark Wilkshire said banks have an important role in helping identify financial crime and supporting the integrity of New Zealand\u2019s financial system.<\/p>\n
\u201cWe acknowledge that aspects of our past transaction monitoring programme did not meet the required standards,\u201d Wilkshire said.<\/p>\n
\u201cWe have worked constructively with the Reserve Bank throughout this process and have taken steps to strengthen our systems and controls. <\/p>\n
\u201cWe are confident that the improvements already taken, and planned for the future, significantly strengthen our compliance in this area.\u201d<\/p>\n
The parties have agreed to jointly recommend to the court that a penalty of $1.425 million is appropriate in the case, though the penalty is ultimately for the court to determine.<\/p>\n
The Co-operative Bank has made a provision for the potential penalty in its 2026 financial statements.<\/p>\n
The matter will now proceed through the High Court, which will determine the appropriate outcome.<\/p>\n
From July 1, 2026, the Department of Internal Affairs (DIA) will become the single AML\/CFT supervisor for all reporting entities in New Zealand.<\/p>\n
The DIA is supportive of the action against The Co-operative Bank and will take over the proceeding from July 1, 2026.<\/p>\n
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.<\/p>\n