Commonwealth Bank accused of ‘very serious’ rule breaches
Australia’s financial intelligence agency expanded an anti-money laundering probe into Commonwealth Bank on Thursday to include new claims that it failed to adequately monitor suspected terrorist financiers.
The lender, the country’s largest company by market capitalization, was already facing a civil case by AUSTRAC in August. It alleged the bank engaged in “serious and systemic non-compliance” of anti-money laundering laws involving thousands of transactions.
In its first response late on Dec. 13, Commonwealth admitted 53,506 breaches, saying it was due to a “systems-related error,” but added that it would defend a host of others claims brought against it.
“We contest a number of allegations but admit others, including the allegations relating to the late submission of 53,506 threshold transaction reports (TTRs), which were all caused by the same single systems-related error,” it said.
The bank is accused of failing to deliver to AUSTRAC on time reports for cash transaction.