The Reserve Bank of New Zealand is working closely with regulatory counterparts following an announcement about alleged systemic AML/CFT breaches by Westpac Banking Corporation in Australia.

AUSTRAC has applied to the Federal Court of Australia for civil penalty orders against Westpac Banking Corporation in Australia. The civil penalty orders relate to alleged systemic non-compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) in Australia.

Deputy Governor and Head of Financial Stability Geoff Bascand says the Reserve Bank of New Zealand was made aware of AUSTRAC’s actions and is in close contact with counterparts across the Tasman in relation to this issue.

“We have a regular onsite programme with New Zealand banks to ensure compliance with New Zealand’s AML/CFT requirements, and will be looking closely at the Australian findings and if they have relevance for Westpac NZ.”