Austrac alleges CBA in ‘serious’ breach of money laundering act

Austrac has started court action against CBA, alleging “serious and systemic non-compliance” with the Anti-Money Laundering and Counter-Terrorism Financing Act.

Peter Clark, the acting head of the financial intelligence and regulatory agency, said the moved followed an investigation by Austrac into CBA’s compliance, particularly relating to its use of intelligent deposit machines

The action alleges more than 53,700 contraventions of the act.

CBA acknowledged that the civil proceedings had been brought and said it would have more to say on the specific claims “in due course”.

A statement of claim filed in the Federal Court referred to at least four different money laundering syndicates that are alleged to have used CBA ATMs, but the bank failed to report suspicious activity as required.

“The effect of CommBank’s conduct in this matter has exposed the Australian community to serious and ongoing financial crime,” the statement said.

Source: Austrac alleges CBA in ‘serious’ breach of money laundering act