ASB fined record $6.7m for breaching anti-money laundering laws

Author: NZ Herald,
Publish Date: Wed, 10 Jun 2026, 3:11pm

ASB chief executive Vittoria Shortt has apologised for the bank's AML/CFT shortcomings.

The High Court has ordered ASB Bank to pay $6.731 million for breaching anti-money laundering laws.

The penalty is the largest ever imposed by a New Zealand court under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009.

ASB chief executive Vittoria Shortt said the bank accepted the court’s findings.

“We accept responsibility for shortcomings in our transaction monitoring and customer due diligence systems and processes,” Shortt said.

“We accept we didn’t act fast enough to resolve the issue, and I apologise for that.”

Shortt said ASB had “uplifted” its systems and processes to improve its AML/CFT capabilities.

“We have invested significantly in training our people, expanding our financial crime teams and enhancing the technology that supports our financial crime operations,” she said.

“Protecting our customers and the financial system is a core priority for ASB. We remain committed to further strengthening our AML/CFT compliance systems.”

ASB admitted to all seven breaches of the AML/CFT Act and co-operated with the investigation.

The Reserve Bank (RBNZ), which began proceedings against ASB in December 2025, said the penalty reflected the seriousness and prolonged nature of ASB’s non-compliance over about six years.

“Transaction monitoring is a key pillar to detect money laundering and terrorism financing,” the RBNZ’s acting assistant governor, financial stability, Angus McGregor, said.

“It is incumbent on banks to ensure their systems and processes are robust and sufficiently recognise and mitigate these risks.”