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

AUSTRAC, Australia's anti-money-laundering regulator and financial intelligence unit, 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 systematic non-compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 in Australia.

Geoff Bascand, the Deputy Governor and Head of Financial Stability at the Reserve Bank of New Zealand, is aware of AUSTRAC’s actions and is in close contact with the Australians in relation to the matter. He told reporters: “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.”