Bank scandal grows
Westpac service linked to almost 300 child sex cases
WESTPAC may have provided money transfer services to almost 300 customers involved in child exploitation, a number far greater than originally alleged by the financial intelligence watchdog.
The Australian Transaction Reports and Analysis Centre has sought new information from Westpac about another 272 customers who were engaging in behaviour consistent with funding child exploitation.
Such behaviour can include making frequent low-value payments to known abuse hot spots in Asia.
The new probe is far greater than the 12 customers Austrac first expressed concern about when in November it accused the nation’s second biggest bank with breaching antimoney laundering and counter-terrorism financing laws more than 23 million times.
The bulk of those breaches relate to Westpac not filing international funds transfer instruction reports to Austrac.
But allegations its money transfer services were used by a dozen customers who appeared to have funded child exploitation material drew rebuke from the Prime Minister and prompted the resignation of the bank’s chairman and chief executive.
The breaches — some as recently as August last year — happened despite Westpac being warned from at least 2013 onwards by Austrac that frequent low-value payments to the Philippines were a red flag for child abuse activity.
Westpac has since admitted to the majority of the allegations alleged by Austrac but is pushing back against the claim it did not have an adequate program in place to target serious financial crime.
The bank yesterday said it had continued to review its processes and procedures since Austrac launched Federal Court action against it.
Austrac said it was not appropriate for it to comment on the matter given it is before a court.
The scandal prompted the resignation of former chief executive Brian Hartzer, while outgoing chairman Lindsay Maxsted brought forward his retirement.
The Austrac case is set to result in the largest fine in Australian corporate history with Westpac having moved to put aside $900 million to cover the hit.