ANZ investigates claims Palmy branch issued counterfeit Chinese cash

New Zealand's largest bank, ANZ, is investigating claims one of its branches issued counterfeit Chinese currency.

The offending Yuan were purchased by a businessman, who says he nearly got into a lot of trouble in China. Source: 1 NEWS

Businessmen Rob Howard and Joe Hesmondhalgh pre-ordered Yuan for a trip to China for the Canton Trade Fair, but say they discovered six of their banknotes were fake after some confrontations in restaurants and taxis.

"The taxi driver wouldn't accept it, and out on the sidewalk there was what looked to be a 16-year-old kid in [a] police uniform with machine guns and the taxi driver was getting pretty loud and yelling at us, that's pretty scary," ProGroup director Rob Howard said.

"They were the highest denomination we had so we weren't getting them back in change," ProGroup director Joe Hesmondhalgh said.

ANZ said it has processes and technology to detect and remove counterfeit banknotes, but it is now investigating the claims and wants the suspect money back for analysis.

Mr Howard said he will hold on to the dodgy Yuan until the ANZ Palmerston North branch can explain how it was issued.

"How can I go to a New Zealand bank that's trusted and end up with currency that potentially could get someone in a lot of trouble in another country?"