Westpac has sold its banking operations in Samoa, Tonga and the Cook Islands to the Bank of South Pacific for AUD 91mn ($68mn). The bank said it would continue to operate as a separate entity from its existing business in New Zealand but that all staff will be transferred over to the new organisation. The sale will not have a material impact on Westpac's financial position and it will retain its businesses in Fiji and Papua New Guinea, which are its largest Pacific markets. Vanuatu's central bank said now was not the time for a change of operations in the country's banking sector, given the impact of Cyclone Pam on the island nation in March this year. One of the reasons for the bank's decision to sell is due to its concerns over compliance with anti-money laundering and terrorism financing regulation.
Westpac has sold its banking operations in Samoa, Tonga and the Cook Islands to the Bank of South Pacific for AUD 91mn ($68mn). The bank said it would continue to operate as a separate entity from its existing business in New Zealand but that all staff will be transferred over to the new organisation. The sale will not have a material impact on Westpac's financial position and it will retain its businesses in Fiji and Papua New Guinea, which are its largest Pacific markets. One of the reasons for the bank's decision to sell is due to its concerns over compliance with anti-money laundering and terrorism financing regulation.