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It’s official — ANZ announces they’re outta here in September

ANZ AMERICAN SAMOA BANK
ANZ: FDIC “does not have the authority to approve or prevent” the closure
reporters@samoanews.com

Pago Pago, AMERICAN SAMOA — The Australia and New Zealand (ANZ) Banking Group Limited, is closing down its ANZ Amerika Samoa Bank operations in American Samoa by the end of September this year, according to a corporate news release, while a notice to local customers outlined dates of the bank’s operation phase-out.

And the notice to customers from Clarke S. Schaumann, ANZ Country Head for American Territories, points out that the U.S government’s Federal Deposit Insurance Corporation (FDIC) “does not have the authority to approve or prevent the proposed closure of ANZ Amerika Samoa branches.”

The ANZ Group news release was issued Wednesday and by late afternoon, the notice — labeled as a “message” from Schaumann — was available to the bank’s online customers. (Samoa News notes that ANZ Guam Inc. oversees the bank’s local operation.)

The ANZ group acquired the Amerika Samoa Bank operation in 2001 and Schaumann said the “banking environment has changed significantly since then.

“Like all banks, ANZ is responding to this change by making sure we focus our capital and resources where they will have the most impact.

“Following a thorough review of our business in American Samoa, ANZ has made the decision to close its branches and stop providing banking products and services in American Samoa,” said Schaumann.

He provided a phase-out time line for local banking operations — for example, by 3p.m on Sept. 30, “All ANZ Amerika Samoa branches will close permanently” and all night Depository Drop Boxes will cease to be able to be used.”

And by 6p.m. on Sept. 30, access to view statements, balances and secure messages through ANZ Online Banking (OLB) will cease to operate. The notice also provides customers with the information on what they need to do before Sept. 30 — such as withdrawing all money and closing their accounts. A hard-copy of the notice is also expected to be mailed out to all bank customers.

“We apologize for any inconvenience caused by this closure. We are committed to helping you move your banking from ANZ Amerika Samoa before September 30, 2022,” Schaumann said.

The ANZ group’s news release says that not only the American Samoa branches will be closed but also the bank’s operation in Guam.

“This was not a decision we made lightly but we have consulted with our staff and we will support them as we go through this transition period,” Schaumann said in the news release.

Schaumann said he and ANZ Regional Executive Pacific, Tessa Price have recently spent time in American Samoa and “we know that more and more customers are maintaining relationships with multiple banking partners, both on-island and off-island, and will be sufficiently supported after we close.”

He said American Samoa residents will continue to have the option to open accounts with off- island institutions online, including with FDIC insured banks and NCUA insured credit unions.

“We encourage people to explore their options through the BankOn initiative at covidbanking.joinbankon.org. Customers in American Samoa can also continue to access cash through the Territorial Bank of American Samoa (TBAS) ATM network,” he said.

Price said in the corporate news release that in the bank’s “core Pacific markets, where we have been for more than 141 years, ANZ plays an important role in connecting customers to the growing trade and investment opportunities in the region, as well as providing industry insight and links into our home markets of Australia and New Zealand”.

“In American Samoa and Guam, ANZ’s competitive position is not as compelling. US community banking is not in line with ANZ’s key strengths, which is impacting our ability to meet the needs of customers in American Samoa and Guam.”

While ANZ will wind down its business in American Samoa over the next 6 months, the bank said its in discussions with other parties about the future ownership options for its business in Guam.

There has been no official response from the Lemanu Administration since the ANZ announcement as the Governor’s Office — according to industry sources — had already been informed about the closure of ANZ Amerika Samoa Bank operations.

Several House members were made aware of this issue during a committee hearing this week, where it was mentioned briefly by an ASG official.

Samoa News points out that community concerns of ANZ closing have been focused on TBAS, not being a FDIC insured bank and its dismal financials that show losses primarily in its loan portfolio, leading to the bank being worth less than the government’s initial investment.