Australians 'lose trust' in banks over money-laundering scandal

Cornelia Mascio
Agosto 13, 2017

Australia's corporate regulator said on Friday it was conducting an investigation into Commonwealth Bank of Australia after the financial intelligence agency sued the bank for alleged breaches of money-laundering and terror financing laws.

ASIC is looking at whether there have been breaches of the Corporations Act.

The Commonwealth Bank, one of Australia's largest lenders, was the latest to be caught up in controversy when the financial intelligence agency said last week that it had uncovered nearly 54,000 breaches of anti-money laundering laws.

"Given that Austrac's matters are before the court I can not comment on the specifics of that", ASIC chair Greg Medcraft told a joint parliamentary committee hearing today.

Catherine Livingstone, chair of the CBA, said: "The board's actions reflect the focus we are taking on improving the trust among people, customers, businesses and communities that the Bank exists to serve". "But the issues around governance and issues around culture, these are also very troubling for me and these are the issues that the board of CommBank need to address", Mr Morrison said.

CBA's Ms Livingstone has responded with measures including scrapping short term bonuses for all senior executives, and appointing a sub committee of four directors who will personally oversee the bank's response to Austrac allegations.

Instead, he pointed to measures the government has already introduced to increase accountability among senior bank executives, and said it was up to the bank's board to address problems with governance and culture in the bank.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE