Australia’s anti money-laundering and terrorism financing regulator AUSTRAC has approached the federal court seeking civil penalty orders against Westpac.
The regulator filed the civil lawsuit following a detailed probe, alleging more than 23 million breaches of anti-money laundering laws.
Go deeper with GlobalData
AUSTRAC found Westpac’s supervision of banking services offered through correspondent banking relationships ‘deficient’.
It also found the lender’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF Programme) oversight inadequate.
Such failures led to systemic non-compliance and violation of the AML/CTF Act 2006.
AUSTRAC CEO Nicole Rose said: “These AML/CTF laws are in place to protect Australia’s financial system, businesses and the community from criminal exploitation.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“Serious and systemic non-compliance leaves our financial system open to being exploited by criminals.
“The failure to pass on information about IFTIs to AUSTRAC undermines the integrity of Australia’s financial system and hinders AUSTRAC’s ability to track down the origins of financial transactions, when required to support police investigations.”
According to Reuters, the regulator plans to fine Westpac up to A$21m ($14m) for each transaction that was not appropriately monitored. Based on this estimate, the breach is expected to amount to A$483 trillion in fines.
Commenting on the AUSTRAC claims, Westpac CEO Brian Hartzer was quoted by the news agency as saying: “Like everyone who has read the statement of claim, I am personally disgusted and appalled.”
However, he admitted that the bank “should have done better” regarding the breaches.
