In New Zealand, U.S. Financial Institutions Face Questions on Beneficial Ownership Controls

By Kira Zalan

American banks operating in New Zealand are failing to meet the country's due diligence standards for identifying the true owners of corporate clients, according to an auditor in Auckland. The issue is one that could result in formal enforcement actions for at least two financial institutions, according to Martin Dilly, director of AML Solutions, a New Zealand-based consultancy that performs third-party audits. Under national rules, financial institutions in the country had to report the findings of mandated compliance reviews by Aug. 31. "The major issue to date with foreign entities in New Zealand is the identification and verification of those...