The financial intelligence regulator AUSTRAC has stolen the spotlight from Commonwealth Bank CEO Matt Comyn on his first day in the top job with allegations that the bank broke the law by knowingly opening transaction accounts for customers it had reasons to suspect of money laundering.
Among the transactions AUSTRAC says the bank ought to have known, or at least suspected, were not legitimate was $250,000 deposited by an Iranian salesman and a second unemployed customer and a $150,000 deposit made through a Russian Bank from company located in a known tax haven.
AUSTRAC's reply yesterday to CBA's defence of the money laundering allegations made it difficult for Mr Comyn to clear the air as he promised the bank would be more accountable and more transparent under his leadership.
He delivered his message of a more open CBA via email and a short video to staff members on Monday morning where he acknowledged the bank hadn't done enough to resolve problems as they arose.
"We have been too slow to fix mistakes and we have failed to meet some important regulatory and compliance obligations. This is unacceptable," Mr Comyn said in a reference to the bank's fraught dealings with regulators including AUSTRAC, ASIC and APRA.
Advertisement
By late morning, however, AUSTRAC's new claims showed that the two parties were some way from settling the issue the bank has set aside $375 million to resolve, which relates to the regulator's claims it has repeatedly breached transaction reporting requirements.
"CommBank suspected on reasonable grounds that the opening of CommBank Accounts 78,79, 81, 82 and 84 were 'specifically generated for the purpose of laundering money'," AUSTRAC said yesterday.
"Commbank's failure to give the AUSTRAC CEO an SMR (suspicious matter report) in respect of its suspicion ... constitutes a contravention of Section 41 (2) of the Act."
The five accounts formed part of a group of seven that had $1.7 million deposited in them over four years. Among those to open and make deposits in some of those accounts were money launderers known as Person 66 and Person 67.
Person 66 identified him or herself to the bank as an Iranian sales manager and Person 67 as either unemployed or a self-employed cafe owner. The pair would make regular transactions just under the $10,000 mark as a method of avoiding detection known as 'structuring'. AUSTRAC says they deposited $252,136 across two accounts between August 2012 and May 2015.
Commonwealth Bank had placed Person 67 on its 'high risk customer' register in March 2013.
AUSTRAC also alleges that the bank did no due diligence on account 81, which received a $150,000 in May 2015 via an international money transfer performed by a bank in Moscow for a company registered in the Seychelles, a known tax haven.
The bank reviewed the matter and placed the account holder on the high risk register, but did nothing until October 2015 when it gave the customer one month's notice of its intention to close the account.
AUSTRAC CEO Nicole Rose denied claims she was at loggerheads with the banks when she appeared at The Australian Financial Review Banking & Wealth Summit last week where she said she wanted a close relationship with all members of the big four banks. AUSTRAC and CBA have until May 25 to resolve the issue before the courts take over.
Notwithstanding the timing, Mr Comyn's speech was well received by stakeholders. The change of tone from outgoing and highly regarded CEO Ian Narev, who brought forward his departure as the bank faced a growing number of scandals, was evident.
Mr Comyn said he was personally sorry for the failures and the bank was taking steps to make sure they wouldn't happen again.
"We have made mistakes. We have not done enough to protect our customers. That starts with me and our senior executives," Mr Comyn said.
"We will hold ourselves and each other accountable. We will promptly address the issues raised by the royal commission and our regulators."
The premise of a newly humble and repentant Commonwealth does jar however with the strongly worded and combative submission to the first round of the Hayne royal commission just six days ago. The bank made a series of limited admissions, but largely rejected the findings of counsel assisting, Ms Rowena Orr, QC.
Mr Comyn will be looking to replace members of his 10-person-strong executive team following three resignations including that of group executive Kelly Bayer-Rosmarin just two weeks ago. The remaining group level executives including private banking head Adam Bennett, head of legal Anna Lenhahan, chief financial officer Rob Jesudason and chief risk officer David Cohen.
Commonwealth Bank shares were flat at the end of the session, rising 6¢ or 0.1 per cent to $73.55.
Bagikan Berita Ini
0 Response to "AUSTRAC steals Commonwealth Bank CEO Matt Comyn's thunder"
Post a Comment