70194
CBA could face fines running into billions of dollars from the AUSTRAC case.
CBA could face fines running into billions of dollars from the AUSTRAC case.

Corporate Regulator to Probe Australia’s Top Bank

Corporate Regulator to Probe Australia’s Top Bank

Australia’s corporate regulator said it would investigate the nation’s biggest bank, the Commonwealth, over its handling of alleged breaches of money laundering and terrorism financing laws.
The Commonwealth Bank of Australia was already been under fire after it was taken to court in a civil case last week by financial intelligence agency AUSTRAC for “serious and systemic non-compliance” of the laws more than 53,000 times, AFP reported.
Now the Australian Security and Investment Commission regulator said it was probing whether the bank complied with continuous disclosure obligations and if its directors carried out their duties under the Corporations Act.
“ASIC has commenced inquiries into this matter and any consequences this matter has for the laws we administer,” ASIC chairman Greg Medcraft told a parliamentary committee hearing.
While not referring specifically to CBA, Australia’s biggest company by market capitalization, Medcraft stressed the importance of organizational culture in financial service companies.
“If organizations are not behaving in the right way, the crowd will let them know, if not the headlines—often with damaging effects on their brand and reputation,” he said.
The governor of the Reserve Bank of Australia, Philip Lowe, warned at a separate senate economics committee in Melbourne there needed to be accountability in the financial sector, without directly commenting on the AUSTRAC case.
“It’s very serious. We have laws for reasons, banks should not be doing money laundering and they should know who is opening their accounts,” the Sydney Morning Herald quoted him as saying. “If shortcomings are identified then there needs to be accountability, through the court and internally through the organization.”
CBA could face fines running into billions of dollars from the AUSTRAC case.
Treasurer Scott Morrison on Thursday told ABC radio the Commonwealth had an “epic fail” over the money laundering allegations, adding that questions about the firm’s culture and governance were “very troubling”.
There has been pressure from the Labor opposition for a royal commission into banking misconduct after public outrage following a series of consumer fraud allegations as well as claims of interbank lending interest rate rigging.
But the conservative government has so far refused such calls, and instead tightened laws and introduced an annual parliamentary grilling for the heads of the big banks.
CBA on Wednesday posted a 7.6% jump in annual net profit to a record Aus$9.93 billion ($7.86 billion) for the year to June 30.

Short URL : https://goo.gl/YyKLyA
  1. https://goo.gl/cj5njR
  • https://goo.gl/MGKUDd
  • https://goo.gl/8YgsAV
  • https://goo.gl/zHTnSV
  • https://goo.gl/9gVwJg

You can also read ...

China and India continue to remain the most promising investment destinations in 2017.
Developing Asia is expected to witness a 15% increase in...
Thai CB Retains Key Rate
Thailand’s central bank on Wednesday left its key interest...
Elon Musk, Kevin Plank, Bob Iger, Richard Trumka, Kenneth Carleton Frazier
The honeymoon is definitely over. When US President Donald...
Brazil Raises Deficit Ceiling
Brazil is raising its deficit ceiling for this year and 2018...
Riksbank is under pressure to tighten its ultra-loose monetary policy.
Underlying inflation topped the Swedish central bank’s target...
US Household Debt at $12.8 Trillion
US household debt reached a new record in the second quarter,...
At 310% GDP, China’s banking sector is above the advanced economy average and nearly three times  the emerging market average.
China's economy is looking good enough that the International...
Crude oil accounts for 96% of exports and around half of state revenue.
Venezuela might look bad right now amid protests, scarce food...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus