- BSP Financial Group (BFL) has responded to media speculation regarding previous anti-money laundering concerns and its relationship with two ASX-listed banks
- The article alluded that sanctions taken against BSP could pose problems for CBA and NAB, which are required to undertake appropriate due diligence measures on correspondent banks under Australian law
- BSP says it is unaware that any transactions involving correspondent banks, which includes CBA and NAB, are under review
- BSP listed on the ASX month and is considered the largest banking group in Papua New Guinea, although company shares are yet to commence trading
BSP Financial Group (BFL) has responded to media speculation regarding previous anti-money laundering concerns and its relationship with two ASX-listed banks.
On Wednesday, The Australian Financial Review reported Commonwealth Bank (CBA) and National Australia Bank (NAB) could come under scrutiny for their AML due diligence processes amid an ongoing compliance investigation into Bank South Pacific, of which they are partnered with.
BSP today issued a statement in response to the AFR piece, stating it was “unaware that any transactions involving its correspondent banks in Australia are under review”.
BSP listed on the ASX month and is considered the largest banking group in Papua New Guinea, although company shares are yet to commence trading.
The article alluded that sanctions taken against BSP could pose problems for CBA and NAB, which are required to undertake appropriate due diligence measures on correspondent banks under Australian law to ensure they are not facilitating money laundering.
According to BSP, the Financial Analysis and Supervision Unit of the Bank
of Papua New Guinea (FASU) reviewed BFL’s customer due diligence procedures in an onsite inspection in October 2019.
In June 2020, BSP said FASU advised it had formed a preliminary view about non-compliance by BSP regarding its AML due diligence obligations associated with eight of the bank’s customers.
The new lister “substantially refuted” these allegations made against it by FASU and that the regulator has not refuted BSP’s responses.
BSP claimed there had been no further correspondence with FASU since then and intends to continue dialogue with FASU about the review “in a collaborative
manner and to defend its rights and those of its customers”.
Further to this, BSP said it considers the likely outcomes of the review, whether as to any remediation actions or imposition of penalties, will not be material to BFL’s share price.
“As noted in BSP’s recently issued Information Memorandum, BFL believes its current AML policies and procedures are adequate and it is making continuous improvements consistent with international practice,” its statement read.