Westpac’s failure to properly adhere to AUSTRAC guidance occurred due to “deficient financial crime processes, compounded by poor individual judgements”.
Westpac identified three primary causes of its failure to comply with AML/CTF laws, including that some areas of AML/CTF risk were not sufficiently understood within Westpac; that there were unclear end-to-end accountabilities for managing compliance; and that there was a lack of sufficient AML/CTF expertise and resourcing.
“While the compliance failures were serious, the problems were faults of omissions,” said chief executive Peter King. “There was no evidence of intentional wrongdoing.”
More to come.
OMG Westpac so you now probably have an AUSTRAC look back exercise ongoing
Well you like a number of others probably dropped the ball when they introduced new AML/CTF Legislation in Feb 2019 and hardly anyone knew about it
It does however intimate a fundamental capability gap in your business and many others across Australia
There are only about half a dozen people in Australia, (Sorry make that 5 as one Pom has gone back abroad) that totally get governance risk and compliance at an institutional and licensee level and know how to build and implement frameworks that mitigates risk and gives the board and Stakeholders governance oversight
Of those five half wouldn’t work for an institution again and the others you couldn’t afford
One would suggest Sourcing the capability to set comprehensive governance risk and compliance structures to avoid the significant fines AUSTRAC can now impose
Take note self licensees and make sure you have an RM or outsourced guru that keeps you safe
“there were unclear end-to-end accountabilities for managing compliance; and that there was a lack of sufficient AML/CTF expertise and resourcing.”
Corporate talk for the simple word INCOMPETENCE.
I can just hear the staff when questioned how this happened – that’s not in my KPI’s mate so not my problem.
Agree. I’m not sure whether these guys (gals) realise that they have lost the last shreds of credibility that they had. Everyone is laughing at them now.