Westpac, ANZ to pay A$3m each over misconduct

SYDNEY: Two of Australia’s largest banks vowed to toughen oversight of their foreignexchange practices and each pay A$3 million (RM10.2 million) to the nation’s financial literacy fund after a regulator found inappropriate conduct in their currency trading divisions.

Westpac Banking Corp and Australia & New Zealand Banking Group Ltd (ANZ) said yesterday they entered into so-called enforceable undertakings with the Australian Securities and Investments Commission to make changes to their foreignexchange systems, controls and supervision.

An enforceable undertaking is an Australian legal device that is sometimes used as an alternative to civil action by the regulator.

The settlement means Australia’s four biggest banks have now been sanctioned as part of an industry-wide investigation into oversight failings in their foreign exchange divisions.

Commonwealth Bank of Australia and National Australia Bank Ltd in December undertook similar undertakings and each contributed A$2.5 million to the financial literacy fund for similar breaches.

Separately, ANZ, Westpac and National Australia are defending accusations that some of their employees manipulated the country’s benchmark swap rate.

Court hearings are slated for September. Bloomberg