Billions of dollars in transactions in Europe, the U.S. and Asia were not properly monitored by Commonwealth Bank, a new report reveals.
The results of the internal probe mean that the already under pressure bank could now potentially be exposed to investigation by global regulators.
The confidential review of the bank’s compliance with Australian and global anti-money laundering and counter-terrorism laws revealed large-scale failures in transaction monitoring across a multitude of businesses around the world.
Minimal Monitoring
The report obtained by «Sky News Business», was presented to senior bank executives in February and showed non-existent or minimal transaction monitoring across almost two thirds of the Commonwealth Bank of Australia’s (CBA) Institutional Banking & Markets division.
It also found that «product financial crime risk assessments» across the group «have not been updated since 2013».
Business Under Threat
Responding to the Sky News report, Commonwealth Bank said it referred to a «working document proposing technology enhancements as part of our ongoing 'Program of Action',» and noted progress made under a program of technology enhancements.
CBA is already in talks with financial regulators around the world, including in Hong Kong. Being non-compliant with transaction monitoring laws in the U.S., Europe and Asia could potentially destroy billions of dollars in business for the bank.
