Westpac vows to defend third class action

WESTPAC has been hit with a third class action as the fallout from its money laundering and child exploitation scandal mounts.

The nation’s second-largest lender yesterday said it would defend the claim launched by Melbourne-based law firm Johnson Winter and Slattery.

The action has been lodged on behalf of investors who acquired Westpac shares between December 2013 and

November last year and argues Westpac failed to properly disclose issues around alleged anti-money laundering law breaches which are likely to result in the largest corporate fine in Australian history.

It does not identify the amount of damages sought.

Fellow law firms Phi Finney Mcdonald and Rosen have launched similar actions.

The Australian Transaction Reports and Analysis Centre accused Westpac of breaching the nation’s anti-money-laundering and counter-terrorismfinancing laws more than 23 million times.

This includes failing to properly monitor and report transactions that appear to have funded child sexual abuse activities.

The scandal has claimed the scalp of former chief executive Brian Hartzer and former chairman Lindsay Maxsted.

Shareholders also handed the bank a historic second strike on executive pay at its annual general meeting in December.

Westpac has set aside $500 million in extra capital as the banking regulator, the Australian Prudential Regulation Authority, and corporate cop Australian Securities and Investments Commission investigate the actions of the bank’s top brass.