Oz bank giant in hot water

– Australia’s biggest bank was yesterday taken to court by the country’s financial intelligence agency, accused of “serious and systemic non-compliance” of anti-money laundering and counter-terrorism financing laws.

AusTrac said it was taking civil action against the Commonwealth Bank in the Federal Court for allegedly breaching the laws 53 700 times, particularly in relation to its cash deposit machines.

The financial giant could face a massive fine if found guilty.

Gambling giant Tabcorp in March was slapped with a A$45 million (R474 million) penalty by the Federal Court for 108 breaches of the same laws.

“By failing to have sound anti-money laundering and counter-terrorism financing systems and controls in place, businesses are at risk of being misused for criminal purposes,” AusTrac acting chief Peter Clark said.

“AusTrac’s goal is to have a financial sector that is vigilant and capable of responding, including through innovation, to threats of criminal exploitation.”

The bank is accused of failing to deliver to AusTrac on time 53 506 reports for cash transactions of A$10 000 or more at the machines between November 2012 and September 2015, with a total value of A$624.7 million.

The bank also failed to report suspicious transactions. – AFP