By Rebecca HowardNew Zealand's banking sector remains vulnerable to potential money laundering and terrorism financing risks, says the Reserve Bank in its latest assessment. The RBNZ underscored the assessment didn't take into account the adequacy or effectiveness of any money laundering or terrorism financing controls that have been put in place. The study is "an assessment of potential inherent risk across each sub­sector and the sector as a whole," it said. The estimate relates principally to drug and fraud offending and the value of money laundering associated with tax evasion has not been established "but is thought to be significant." Within the sector, retail banking and business/commercial banking are rated high risk while wholesale/institutional banking is rated medium.

Source: New Zealand Herald April 07, 2017 00:56 UTC