The Reserve Bank has issued a formal warning to Aotearoa Credit Union over its failure to meet its anti-money laundering obligations.
The central bank which oversees non-bank deposit takers, said it had reasonable grounds to believe Aotearoa did not comply with certain requirements under the Anti-Money Laundering and Countering Financing of Terrorism Act between June 30, 2013 and February 2, 2015.
Those obligations included conducting due diligence on customers and account monitoring, the requirement to report suspicious transactions in the prescribed form, the obligation to comply with customer due diligence requirements and the requirement to have adequate and effective procedures, policies and controls to monitor and manage compliance with the act.
The bank said it had accepted an enforceable undertaking from Aotearoa to review its risk assessment and anti-money laundering programme and change the identified deficiencies.
"If Aotearoa Credit Union fails to meet the terms of the enforceable undertaking, the Reserve Bank may apply to the court for an order directing Aotearoa Credit Union to comply with the agreement," it said in a statement.
