Is Hong Kong being drawn into an ugly money-laundering probe at one of Australia's big-four banks?
Commonwealth Bank of Australia is grappling with a money-laundering scandal that cost its Chief Executive his job earlier this week.
Australian authorities are looking into so-called intelligent, or automated, deposit machines at CBA which failed to register warnings of potential laundering. The Sydney-based bank has maintained that an algorithm is to blame for the lapse.
Hong Kong Watchful
According to Aussie media, the funds quickly made their way from CBA to Hong Kong, leading the regulator there to open its own investigation.
The Hong Kong Monetary Authority wouldn't comment on CBA to finews.asia, but conceded that it is watching the case for potential fallout in its financial market.
«We are monitoring the case and will review the information to assess relevant implications for Hong Kong,» a spokeswoman for the HKMA said.
Sophisticated Syndicates
Australia charges that several money-laundering syndicates used intelligent deposit machines to launder billions of Australian dollars, and to shift some of it out of the country.
«The HKMA maintains close dialogue with overseas regulators both as part of its general day-to-day supervision of authorized institutions and on a case-by-case basis but it is not appropriate for us to comment on details,» the Hong Kong regulator's spokeswoman said.
