The Co-operative Bank acknowledges and accepts responsibility for breaches of its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) obligations, following the Reserve Bank of New Zealand filing a civil proceeding in the High Court.
The proceeding concerns compliance issues from past practices that relate to the Bank’s transaction monitoring programme, including assurance over that programme.
Importantly, there are no allegations that the Bank has been involved in money laundering, terrorist financing or any other criminal activity, or that the non-compliance has resulted in adverse customer impacts.
Mark Wilkshire, Chief Executive Officer of The Co-operative Bank, said:
“Banks have an important role in helping identify financial crime and supporting the integrity of New Zealand’s financial system. We acknowledge that aspects of our past transaction monitoring programme did not meet the required standards.”
“We have worked constructively with the Reserve Bank throughout this process and have taken steps to strengthen our systems and controls. We are confident that the improvements already taken, and planned for the future, significantly strengthen our compliance in this area.”
The Reserve Bank and The Co-operative Bank are aligned on a recommended penalty amount for the High Court’s consideration. The Bank has made a provision for the potential penalty in its 2026 financial statements.
The matter will now proceed through to the High Court, which will determine the appropriate outcome.