AUSTRAC has accused CBA of 53,700 contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF) regarding the use of the bank’s intelligent deposit machines (IDMs).
In a ‘concise statement’ filed in the Federal Court, AUSTRAC said the bank’s IDMs are capable of accepting 200 notes per deposit, or up to $20,000 per cash transaction.
CBA does not limit the number of IDM transactions a customer can make in one day, and deposits using the machines are instantly credited to the recipient’s account, the statement said.
AUSTRAC said IDMs facilitate anonymous cash deposits, because a card from any financial institution can be used to activate the machine.
The government agency said CBA failed to carry out an AML/CTF risk assessment prior to rolling out the IDMs, nor after it witnessed an “exponential rise in cash deposits through IDMs”.
In its filing, AUSTRAC included details of four criminal syndicates that used CBA’s IDMs to make millions of dollars in cash transactions.
“CBA failed to give 53,506 threshold transaction reports to AUSTRAC on time for cash transactions of $10,000 or more through IDMs from November 2012 to September 2015,” said AUSTRAC.
“AUSTRAC alleges that the bank failed to report suspicious matters either on time or at all involving transactions totalling over $77 million.”
we cannot possibly have the big Aussie bank pay a massive deserved compensation. that would have an effect on the economy and peoples finances and lives will be destroyed…..oh that’s right this has already been happening for a very long time under the CBA banner.
I can’t believe the idiocy that allowed this to occur. Surely somebody involved in the set up of these IDMs stopped to scratch their head and wonder how AML-CTF obligations could be met… but clearly not! It’s a wonder given the bashing that the poor branch staff get for not following these protocols while serving customers over the counter.
It’s the management and the filthy culture that’s permeates from them within the 4 major banks that needs to be severely reprimanded when these oversights happen and I sure as hell hope its not the staff copping it from within.
These managers receive huge bonuses on top of their already enormous wages for the evil they wreak, then simply move on to other hugely paid roles, normally just at another bank, with little or no consequence whatsoever.
If advisers are going to be named and shamed for what we do wrong, why can’t senior management in these banks cop the same treatment? They earn a hell of a lot more money these days then I do now.
I expect a slap on the wrist for those who are too big to fail…
Back in March, Tabcorp was fined $45-million for contravening the AML/CTF Act on 108 occasions over 5-years. Can’t wait to see what the fine is for 53,700 breaches….oh hang on, it’s one of the banks.