Commonwealth Bank admits to money-laundering in response to AUSTRAC

Company News

by Kathy Skantzos

Commonwealth Bank (ASX:CBA) has admitted to breaches of money laundering and counter-terrorism financing laws in response to federal regulator AUSTRAC’s allegations filed in Federal Court which commenced in August this year.

The bank admitted yesterday afternoon it was late in filing more than 53,000 reports of transactions of $10,000 or more through its deposit-taking ATMs between 2012 and 2015, which were caused by a systems-related error.

Commonwealth also admits it failed to meet risk assessment requirements for its deposit-taking ATMs, and recognised the bank should have introduced daily limits earlier.

The bank also denied more than 100 allegations, including claims concerning ongoing customer due diligence requirements and suspicious matter reports.

Commonwealth said it takes its anti-money laundering and counter-terrorism financing obligations extremely seriously and regrets failure to comply with these obligations, adding that it has made progress strengthen its policies.

Shares in Commonwealth Bank (ASX:CBA) closed 0.06 per cent lower to $80.31.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.