Big 4 bank enters enforceable undertaking with AUSTRAC

NAB has confirmed it has entered into an enforceable undertaking (EU) with financial crimes regulator AUSTRAC.

It comes after AUSTRAC launched a formal investigation into the major bank’s compliance with AML/CTF laws in June last year, flagging “potential serious and ongoing non-compliance” with customer identification procedures and ongoing customer due diligence.

On Monday, 2 May, NAB CEO Ross McEwan said the bank takes the AML/CTF obligations seriously and will continue to work closely with AUSTRAC.

“We recognise it has taken us longer to fix the concerns raised than it should have. We welcome AUSTRAC’s acknowledgement that NAB has undertaken significant work to date – and we accept that there is more to do,” Mr McEwan said.

“It is essential that everyone in our bank is focused on getting the basics right, every time, and keeping our customers and bank safe. Keeping criminals out of the financial system is a top priority for NAB. We recognise our opportunity to better detect, deter and disrupt the flow of illegal money at a time when the threat is evolving at an incredible rate.

“We have a plan to make our bank simpler for customers to use, while safeguarding against the criminal threat. The EU provides a clear timeline as we further build capability, increase resourcing, continue to modernise our systems and improve controls and governance.”

Under the terms of the EU, NAB and relevant members are required to complete a remedial action plan, to be approved by AUSTRAC, by 31 December 2024 and appoint an external auditor who will provide a final report by 31 March 2025.

The delivery of the RAP will be overseen by NAB’s dedicated financial crime executive committee.

“National Australia Bank has demonstrated a commitment to uplifting its AML/CTF controls, and has undertaken significant work identifying and implementing improvements to its programs,” AUSTRAC CEO Nicole Rose said in a separate statement.

"NAB has worked collaboratively with AUSTRAC throughout the investigation, and this enforceable undertaking will help to ensure NAB meets its compliance and reporting obligations.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.