ASB fined $6.73m for breaches of money laundering law

3:40 pm today

ASB reached a settlement in December 2025.

Photo: RNZ / Dom Thomas

ASB has been penalised a record $6.73 million for seven breaches of anti-money laundering and countering financing of terrorism law.

The fine was imposed by the High Court, following action by the Reserve Bank (RBNZ).

The penalty was first agreed to by the two parties after they reached a settlement in December 2025.

The RBNZ said ASB's transaction monitoring system and AML/CFT programme were inadequate for approximately six years, labelling it "unacceptable".

"Transaction monitoring is a key pillar to detect money laundering and terrorism financing. It is incumbent on banks to ensure their systems and processes are robust and sufficiently recognise and mitigate these risks," acting assistant governor financial stability Angus McGregor said.

The RBNZ said ASB cooperated with the investigation and admitted to all seven breaches.

"Non-compliance with transaction monitoring and reporting requirements denies New Zealand intelligence agencies crucial time-sensitive information that is needed to detect and deter money laundering and terrorism financing from impacting New Zealand communities," McGregor said.

The RBNZ filed proceedings against ASB in December 2025, following an investigation.

Breaches included failures to report suspicious activities within the time required, failures to conduct enhanced customer due diligence and terminate business relationships when required.

ASB chief executive Vittoria Shortt previously issued an apology for the breaches.

"Our transaction monitoring and customer due diligence systems and processes had shortcomings, and we did not act fast enough to resolve these. We didn't get this right and I apologise for that."

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