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Published: Fri, August 11, 2017
Culture | By Antonia Gonzales

Australian bank sued after 54K breaches of anti-money laundering & terrorism laws

Australian bank sued after 54K breaches of anti-money laundering & terrorism laws

A statement from the bank's board, released just an hour after the bank posted a record full year profit of $9.9 billion, said CBA would be upgrading its financial crime technology to better flag suspicious money movements.

"The overriding consideration of the board was the collective accountability of senior management for the overall reputation of the group".

The bank will also buy the remaining 20 percent of mortgage broker Aussie Home Loans it doesn't now own, after founder John Symond exercised his option to sell the stake.

"We will maintain our focus on our long-term sources of competitive advantage in our customer base and in technology, while accelerating the focus on productivity that we need to remain competitive for the long term, and listening more to our community and strengthen trust", the bank's financial report reads. CBA promptly fixed the coding error involving the IDMs and changed the senior leadership in roles that oversee financial crimes compliance, compliance more broadly, and operational risk, the board said.

The banking giant made the decision recognising the heighted public interest in executive remuneration, particularly having regard for the civil penalty proceedings initiated last week by AUSTRAC.

The 50-year-old, who has led the bank since December 2011, "retains the full confidence of the board", Livingstone said.

AUSTRAC alleges CBA failed to provide on-time reports for more than 53,506 cash transactions of $10,000 or more through its Intelligent Deposit Machines between November 2012 and September 2015.

Stricter rules when taking on new customers. Narev said the bank had "made mistakes", but that there had been no intent to deceive.

Australia's big-four banks have this year increased interest rates on investor and interest-only mortgages following pressure from regulators to rein in credit.

The bank told shareholders that the increase in its information and technology services spend was driven primarily by a $393 million one-off expense for acceleration of amortisation on certain software assets.

Retail banking services accounted for AU$4.96 billion of the bank's profit, while subsidiary Bankwest contributed AU$702 million of the AU$9.88 billion total.

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