“In a worst-case (but not fanciful) scenario, an error in a disclosure document, which has not caused any harm to consumers, could create a liability that threatens the solvency of the lender with adverse outcomes for depositors, shareholders, and the New Zealand financial system as a whole,” the association told the minister at the time, Andrew Bayly.

Finance and Expenditure Committee (more…)

Finance and Expenditure Committee (more…)

Finance and Expenditure Committee (more…)

Council of Financial Regulators (more…)

“The law aims to stop people trying to disguise the origin of criminal profits, such as drug trafficking or fraud,” he said. “Under the law, there are rules about verifying the source of the funds, and the identity of the person paying and the recipient.

“There are several options that banks may offer in providing assistance to these customers, depending on their particular circumstances. That may, for example, include temporarily moving to interest-only repayments or suspending all repayments.”

External Reporting Board (more…)

The good news is that the New Zealand Banking Association is introducing new protections by November. Changes include banks being required to reimburse fraud victims up to $500,000 if they meet certain criteria, and new technology to identify risky or unusual customer transactions.

Financial Markets Authority (more…)