Westpac will bring an end to the money laundering scandal involving 23 million breaches, including payments between known child exploiters, by paying a record payment for settlement.
The Australian banking giant will pay a record A$1.3 billion ($920 million) – equivalent to its total first-half profits – to settle with money laundering watchdog AUSTRAC (Australian Transaction Reports and Analysis Centre).
«Our role is to harden the financial system against serious crime and terrorism financing and this penalty reflects the serious and systemic nature of Westpac's non-compliance,» said AUSTRAC chief executive Nicole Rose in the statement that included the bank’s admission to the breaches.
«Number One Priority»
The settlement follows a probe commissioned by the bank found «immature and «reactive» risk culture regarding anti-money laundering and terrorism financing laws alongside staff with lacking skills, expertise and experience in the area.
«We are committed to fixing the issues to ensure that these mistakes do not happen again,» said Peter King, Westpac’s new CEO, appointed to repair the bank’s damaged reputation. «This has been my number one priority. We have also closed down relevant products and reported all relevant historical transactions.»
Of the 23 million breaches discovered, it included improper reporting on more than 19.5 million international fund transfer instructions totaling over $11 billion.
