ASIC Ends Years-old Probe into CBA’s AML Breaches

Source: Regulation Asia Editors, Regulation Asia 2020-08-27

ASIC will not be pursuing further enforcement action against Commonwealth Bank for the AML breaches that in 2018 resulted in a A$700mn settlement with AUSTRAC.

ASIC (Australian Securities and Investments Commission) has decided not to take further enforcement action against CBA (Commonwealth Bank of Australia) over the money laundering failures identified in a lawsuit brought against the bank in 2017.

In the 2017 lawsuit, AUSTRAC had alleged thousands of AML/CTF breaches which resulted in millions of dollars being laundered through the bank by criminals, including drug and firearms importers.

CBA admitted to failures to properly monitor its systems and to implement proper controls on its ‘intelligent deposit machines’, which allowed customers to deposit money anonymously and transfer the funds almost immediately. It also admitted to failures to properly file more than 53,000 reports to AUSTRAC for cash deposits of more than AUD 10,000.

The bank ultimately settled the case for a record AUD 700 million (USD 506 million) penalty.

In the aftermath of the case, ASIC had said in August 2017 that it would look into whether CBA and its directors had properly disclosed material information to investors, and whether the bank complied with licensing obligations to act efficiently, honestly and fairly.

On Wednesday (26 August), CBA disclosed in an ASX filing that it had been notified by ASIC that the investigation was complete and no further enforcement action would be taken.

bank

ASIC

CBA

AUSTRAC

Australia

ASIC Ends Years-old Probe into CBA’s AML Breaches

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