AUSTRAC adds to list of CBA allegations

The amended statement of claim alleges a further six contraventions of intelligent deposit machine risk management obligations, 38 contraventions of ongoing customer due diligence obligations and 56 contraventions of suspicious matter reporting obligations.

AUSTRAC chief executive Nicole Rose said the additional 100 alleged contraventions were identified after the regulator instituted civil penalty proceedings against the bank.

“These allegations are very serious and reflect systemic non-compliance over approximately six years,” Ms Rose said.

In a statement to the ASX, the Commonwealth Bank said it will “review the amended statement of claim and update the market as appropriate”, adding it will file an updated defence “in due course”.

The bank lodged its initial defence yesterday, refuting a number of the claims and noting that AUSTRAC intended to lodge an amended statement.

The bank said it had commenced a program in 2015 to “significantly upgrade” its compliance operations with regard to anti-money laundering and counter-terrorism financing regulation, and had continued in the last 12 months.

“During 2017, we have stepped up the rigour and intensity of the program and extended it across all aspects of financial crime obligations and all business units to further strengthen regulatory compliance,” the bank said.