Australia's Westpac Bank Agrees Record Fine For Money-laundering
Muhammad Irfan Published September 24, 2020 | 04:33 PM
Australia's Westpac bank has agreed to pay a record AU$1.3 billion (US$923 million) fine for more than 23 million breaches of money-laundering laws, the bank and regulators announced Thursda
Sydney (UrduPoint / Pakistan Point News - 24th Sep, 2020 ):Australia's Westpac bank has agreed to pay a record AU$1.3 billion (US$923 million) fine for more than 23 million breaches of money-laundering laws, the bank and regulators announced Thursday.
Australia's financial intelligence watchdog, AUSTRAC, said the wrongdoing included Westpac failures to monitor international payments suspected of funding child exploitation.
"Our role is to harden the financial system against serious crime and terrorism financing and this penalty reflects the serious and systemic nature of Westpac's non-compliance," AUSTRAC chief executive Nicole Rose said in the statement.
Westpac acknowledged the breaches in a statement submitted Thursday to a federal court, which must now approve the fine, the largest civil penalty in Australian history.
The penalty exceeded a provision of $900 million Westpac budgeted earlier this year to cover the expected penalty.
"I would like to apologise sincerely for the bank's failings," Peter King, Westpac's chief executive, said in announcing the agreement.
King said Westpac had beefed up its financial crime monitoring capabilities and undertaken a "reassessment of our culture, governance and accountability" to prevent future breaches.
"We are determined to continually lift our financial crime standards, comply with our obligations and uphold our customer, community and regulatory expectations," he said in a statement.
The regulator accused Westpac in November 2019 of wholesale breaches of money-laundering and counter-terrorism regulations 23 million times, involving more than US$7 billion dollars in funds.
Among the most damaging allegations against Westpac, the regulator accused bank executives of "indifference" to evidence that some international transfers were being used to fund child exploitation.
AUSTRAC said the bank had been aware of heightened risks associated with frequent small payments destined for Southeast Asia since 2013 and had been "specifically briefed" on the risks with respect to one of its money transfer channels in June 2016.
Westpac's chief executive, Brian Hartzer, subsequently resigned over the scandal, handing over to King, the bank's chief financial officer at the time.
The company chairman, Lindsay Maxsted, also stepped down.
Attorney General Christian Porter said the huge fine against Westpac "should serve as a wake-up call to all financial institutions" to comply with money laundering and counter-terrorism regulations.
Home Affairs Minister Peter Dutton, whose department spearheads the battle against child abuse, drug trafficking and terrorism, said Westpac had "breached the trust" of Australians.
"Banks have a responsibility to not let criminal activity go undetected and to protect Australians from serious and organised crime like child exploitation, drug trafficking and fraud," Dutton said.
Australia's largest lender, the Commonwealth Bank (CBA), paid a fine of Aus$700 million in 2018 after AUSTRAC found it had failed to report on 53,500 transactions.
That had been the highest penalty ever imposed on an Australian company until Thursday's agreement.
Australia's banking industry, one of the world's most profitable, has been under intense pressure in recent years for a wide range of wrongdoing.
The country's four biggest banks -- CBA, Westpac, National Australia Bank (NAB) and ANZ -- were the target of a royal commission that in 2019 exposed rampant malpractice across the sector.
It found banks had charged fees to dead people and to others for no services at all, used aggressive sales tactics and provided poor advice that led to significant financial upheaval for clients.
All the banks have reported significant hits to profits as they reimburse hundreds of millions of dollars to wronged customers.
Related Topics
Recent Stories
ICC Womens T20 World Cup Qualifier, Match 2: Ireland Women open with Comfortable ..
Robinson, bowlers help New Zealand go 2-1 up against Pakistan
Shahzeb Chachar to hold khuli kachehri on April 26
Heatwave amid Israel's aggression in Gaza brings new misery, disease risk
Tourism must change, mayor says as Venice launches entry fee
Court adjourns Judicial Complex attack case till May 17
Nasreen Noori’s book ‘Popatan Jahra Khwab’ launched
Wafaqi Mohtasib inspection team visits Excise and taxation office
AJLAC announces 5th Conference titled ‘People’s Mandate: Safeguarding Civil ..
Pak-US officials engage to enhance trade, investment ties
IBCC to promote educational excellence, expand regional presence
Pakistani 'Blue Helmets' serving UN Peacekeeping Mission in DR Congo set to leav ..
More Stories From Business
-
Chinese minister felicitates Ahsan Iqbal on reappointment as Planning minister
6 hours ago -
Pak-US officials engage to enhance trade, investment ties
7 hours ago -
Stocks fall as tech shares sink, US economy slows
8 hours ago -
Higher taxes, awareness help decrease cigarettes sale in Pakistan
9 hours ago -
Ahsan Iqbal chairs CPEC JWGs, 13th JCC review-meeting
9 hours ago -
Industries Minister recommends urea fertilizer import to stabilize prices and supply
9 hours ago
-
Honda announces US$11 bn EV battery and vehicle plant in Canada
9 hours ago -
Zhao Shirin calls on Punjab Industries Minister
9 hours ago -
CEO APM Terminals calls on Finance Minister
9 hours ago -
SACM visits GTVC checks attendance register
10 hours ago -
CEO APM Terminals meets Commerce Minister
10 hours ago -
RTO destroys huge quantity of non-duty paid cigarettes
10 hours ago