Concerns are growing that overseas regulators may begin to take a closer look into Australia's largest banking operations in their own countries.
The worries come as a consequence of Commonwealth Bank of Australia's (CBA) alleged breaches of anti-money laundering laws start to mount.
Senior CBA executives have been in conversation with foreign regulatory bodies since local anti-money laundering agency Austrac filed its incendiary 600-page claim against the bank in the Federal Court.
Asia Has Concerns
According to a report in the local publication «The Australian» (Behind paywall) the bank, those conversations are continuing, and involve regulators in the United States.
As finews.asia reported the bank is also under investigation by the Hong Kong Monetary Authority, while the Monetary Authority of Singapore has said it is ‘«aware’» of the Austrac allegations.
CLSA analyst Brian Johnson said the anti-money laundering claims went «well beyond» the simple coding oversight CBA had so far claimed to be responsible for the alleged breach, the article stated.
«With CBA having facilitated the transfer of anti-money laundering breached funds to Malaysia and Hong Kong, those country regulators will be reviewing CBA for potential anti-money laundering fines,” Johnson added.
