Invercargill-based SBS Bank has entered into a multi-year contract with Christchurch-based Wynyard Group to supply it with advanced financial crime-detection solutions.
The new soft-ware, which was developed in New Zealand, allows banks, insurers, finance companies and wealth managers to monitor transactions, detect money laundering and prevent fraud.
Wynyard is part of the Jade Software group.
Jade chief executive Craig Richardson said he was pleased SBS was the first New Zealand company to pick up the product.
"SBS is an interesting story. It is a modest-size financial institution, doing really cool stuff, and we like the idea of doing business with them."
When Jade received Government funding for research, the company made a promise to deliver value back to New Zealand. It also wanted to give something back by delivering a solution at a "reasonable price" but under a commercial arrangement, he said.
The money-laundering detection product was the second generation to be developed to help companies manage compliance with the country's Anti-Money Laundering and Countering Financing of Terrorism Act 2009, which was due to become law on June 30 next year.
Earlier products were nearly six years old and clumsy to use.
Wynyard wanted to develop something to meet modern detection requirements, Mr Richardson said.
The Act would require businesses or persons that carried out financial activities to put in place systems which prevented or detected transactions made by criminals trying to launder money or finance terrorism.
Wynyard would support SBS' compliance programme and ensure its policy and processes were robust, he said.
SBS general manager risk and support Mark McLean said the bank had undertaken to implement Wynyard's solution well in advance of the necessary compliance date as part of its service to customers and the greater community, by enhancing New Zealand's reputation as a safe place to do business.
"As New Zealand's largest building society, we have a strong customer service track record and part of this is managing any risk, particularly those that might damage our reputation and expose our customers to risk."
Wynyard would deliver a service for detecting, investigating and reporting suspicious activities along with local support and knowledge of the legislation, Mr McLean said.
Mr Richardson said money laundering and fraud was a global problem but New Zealand was late in adopting anti-corruption measures.
"Regardless of where a business is headquartered, if it operates within New Zealand it will be required to demonstrate compliance with the Act, or face harsh consequences."
Internationally, fines for non-compliance had been in the hundreds of millions of dollars, with larger damage to the reputation of those that failed in their governance, risk compliance and reporting accountabilities.
