ASB has been ordered to pay a record $6.731 million after regulators identified inadequate anti-money laundering systems.
This is the largest fine of its kind in New Zealand history.
The Reserve Bank of New Zealand began proceedings against ASB in December 2025 after an investigation into the bank.
The Reserve Bank said ASB’s transaction monitoring and anti-money laundering and countering financing of terrorism programme were inadequate for about six years, describing the findings as “unacceptable”.
ASB cooperated with the investigation and admitted to seven breaches of legislation.
The breaches included failures to maintain programmes for customer due diligence, risk management of money laundering and terrorism financing, and compliance monitoring across ASB’s procedures, policies, and controls.
The bank also failed to properly conduct ongoing customer due diligence for foreign trust customers, report suspicious activity on time, carry out enhanced due diligence, and end business relationships when required.
The High Court ordered ASB to pay a civil pecuniary penalty of $6.731 million. This is the largest penalty ever imposed for anti-money laundering and counter-terrorism financing breaches.
“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,” Reserve Bank’s acting assistant governor for financial stability Angus McGregor explained.
“The AML/CFT Act plays an important part in maintaining and enhancing New Zealand’s international reputation and contributing to public confidence in our financial system.
McGregor said failures to comply with transaction monitoring and reporting requirements deny intelligence agencies vital time-sensitive information needed to detect and deter money laundering and terrorism financing.
Meanwhile, ASB chief executive Vittoria Shortt said the bank accepted the court’s findings and the penalty.
“We accept we didn’t act fast enough to resolve the issue, and I apologise for that.”
She said the bank had cleared all monitoring alert backlogs by February 2024 and had not experienced any since.
Shortt said the bank had improved and continued to improve its systems and processes to strengthen its AML/CFT capabilities.