MELBOURNE, Australia (CU)_Last year, the Westpac Banking Corporation agreed to pay a record $1.3 billion penalty on account of more than 23 million breaches of anti-money laundering regulations. This was the largest penalty in the history of Australian corporate, and was nearly double the previous record of $700 million fine, which was paid by The Commonwealth Bank for nearly 54,000 breaches of anti-money laundering and counter-terrorism financing laws. Once again, another big bank in Australia is under scrutiny for potential breaches of anti-money laundering laws.
National Australia Bank revealed today that it is currently having discussions with AUSTRAC regarding possible breaches since 2017. It further noted that NAB has employed more than 1,200 additional staff and has spent around $800 million since June 2017, in order to improve its financial crime controls.
In a letter addressed to NAB, Australia’s federal financial regulator noted that “at this stage” it is not considering civil penalty proceedings, although “this position may be subject to change”.
However, NAB is not the only firm that is currently being probed, as several casino operators, namely, SkyCity, Crown and Star Entertainment Group, issued separate statements to the ASX today, in which they informed investors that they had been referred to the country’ financial regulator on account of potential breaches of anti-money laundering and counter-terrorism financing laws.
In October last year, Crown’s casino in Melbourne announced that it was being investigated by AUSTRAC, and following potential issues that were identified, this investigation has now been expanded to its Perth casino. The news comes amid Crown’s decision to consider a takeover bid from Star Entertainment worth $14 a share.
Meanwhile, SkyCity’s casino in Adelaide is said to have potentially failed in the casino’s treatment of high-risks customers, including those politically exposed, within the periods of July 2015 to June 2016 and July 2018 to June 2019, which is what led to AUSTRAC’s investigation. According to the casino operator, the regulator has not yet concluded regarding whether and what enforcement action would be taken as discussions continue between the parties.
