Westpac will pay a civil penalty of $1.3 billion – $404 million more than its $900 million provision – to settle the AUSTRAC matter. As part of its agreement with AUSTRAC, Westpac has also admitted to additional contraventions of AML/CTF legislation and will pay the regulator’s $3.75 million in legal costs.
“I would like to apologise sincerely for the bank’s failings,” said CEO Peter King.
“We are committed to fixing the issues to ensure that these mistakes do not happen again. This has been my number one priority. We have also closed down relevant products and reported all relevant historical transactions.”
Westpac admitted it had failed to report over 19.5 million international funds transfer instructions (IFTIs), amounting to more than $11 billion; pass on information about the origin of some of those fund transfers; appropriately assess and monitor risks associated with correspondent banking relationships; and carry out appropriate customer due diligence in relation to suspicious transactions associated with possible 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,” said AUSTRAC CEO Nicole Rose.
“Westpac’s failure to implement effective transaction monitoring programs, and its failure to submit IFTI reports to AUSTRAC and apply enhanced customer due diligence in relation to suspicious transactions, meant AUSTRAC and law enforcement were missing critical intelligence to support police investigations.”
I think Westpac would call that minor incidental marketing expenses….a bit you paying $500 for Instagram adds.
It was only 23 million breaches, surely they should be let off.
No suspensions, no banning’s, no execs personally held to account or careers destroyed. Another day of how ASIC deal with the big end execs vs. Financial Planners. It will be the poor shareholders and customers that will end up paying this. What happened to BEAR ASIC?
Will ASIC suspend half of it like the NRL does when idiot players bring their industry into disrepute.
So is the BEAR finally going to be unleashed or was that all just talk?
That should fund ASIC for a while????
Does this reduce our annual ASIC funding fees?
No.
2.5% of their market cap. Like the average advice business (worth $3m) copping a $75K fine. Like a slap in the face with wet lettuce.
Well there you go. APRA tells the Banks to cut dividends so AUSTRAC can fund itself via fines. This is becoming very socialistic government interference in the market place. Free market my ass
But you can keep your banking and financial services licence. Just pay ASIC money and we will go away Smaller entity and it is loss of licence and go straight to jail, do not pass go.
What about CBA? Surely their breach was 10 times worse?
Bank…pay the fine, move on.
Adviser…licence cancelled, out of business, staff unemployed, family decimated, criminal charges, go to jail. Totally reasonable??????
No one loses their livelihood as opposed to the small suburban financial planner when they do the wrong thing.