June 21, 2021The NationalBusiness

THE Bank South Pacific Financial Group Ltd (BFL) is not of any transaction involving its correspondent banks in Australia being under review.
The group was responding to a report in the Australian Financial Review last Wednesday that the company was the subject of regulatory action by the financial analysis and supervision unit of the Bank of PNG (Fasu) concerning anti-money laundering processes.
The newspaper reported that Commonwealth Bank of Australia (CBA) and the National Australia Bank (NAB) could come under scrutiny for their anti-money laundering due diligence processes amid an ongoing compliance investigation into Bank South Pacific, of which they are partner with.
Group chief executive officer Robin Fleming said the BSP Finance Group was regulated by the Bank of PNG, including its Fasu division, in respect of anti-money laundering.
He said Fasu undertook a review of BFL customer due diligence procedures in an onsite inspection in October 2019.
“In June last year, FASU notified BFL that it had formed a preliminary view about non-compliance by BFL with its laundering due diligence obligations in respect of eight customers,” he said.
“In response to that notification, BFL substantially refuted the allegations made against it by Fasu including by letters sent last October.
“To date Fasu has not refuted BFL responses.” Fleming said in April this year, the BFL provided a further detailed explanation to FASU in respect of each of the customers per the subject of Fasu’s request.
“BFL intends to continue its dialogue with Fasu about the review in a collaborative manner and to defend its rights and those of its customers,” he said.
“BFL considers that 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.
“Accordingly, BFL is of the view that further disclosure is not required at this time.”