CBA accused of more than 53,000 breaches of money laundering and terrorism financing laws

THE Commonwealth Bank of Australia boss has warned people against jumping to conclusions after it was accused of more than 53,000 breaches of money laundering and terrorism financing laws.

“I understand there is very little goodwill for banks in general, and for CBA in particular, so when something like this happens people jump to conclusions,” Ian Narev told The Australian in an article published on Monday.

The federal government’s financial intelligence unit AUSTRAC last week launched civil proceedings in the Federal Court against CBA. It’s accused the bank of systemic failure to comply with anti-money laundering and counter-terrorism financing laws.

CBA said in a statement on Monday it was taking AUSTRAC’s allegations seriously and admitted “mistakes can be made”. “In an organisation as large as Commonwealth Bank, mistakes can be made. We know that because we are a big organisation, these mistakes can have significant impact,” it said.

It pointed to a coding error in its Intelligent Deposit Machines between 2012 and 2015, when it was discovered. “The vast majority of the reporting failures alleged in the (AUSTRAC) statement of claim relate specifically to this coding error,” it said.

CBA releases its full year results on Wednesday.

On Friday its shares closed down 3.9 per cent, wiping about $5.5 billion off its market value.

CBA could face a maximum penalty of $18 million for each of the 53,700 contraventions, if found guilty.

The case is already making waves in Federal Parliament.

South Australian Senator Nick Xenophon on Sunday floated introducing legislation to apply criminal sanctions, including jail terms, to the executives of banks “who systemically fail to abide by the rules” on money laundering and terror financing.


banks eh?

the fines could total a trillion dollars..a trillion..that would render the cba this space..



~ by seeker401 on August 8, 2017.

5 Responses to “CBA accused of more than 53,000 breaches of money laundering and terrorism financing laws”

  1. I remember my time in Oz … about 20 years ago. Then Commonwealth Bank was the only Bank there, where you could just walk in and open an account, even as a non resident. I was very thankful for that and it made my life much easier in Sidney and while travelling

  2. Reblogged this on World Peace Forum.

  3. Commonwealth Bank: ASIC to investigate CBA over money-laundering scandal

  4. Commonwealth Bank CEO Ian Narev to retire in 2018 amid AUSTRAC scandal

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: