MONEY LAUNDERING – LAW AND LEGISLATION – AUSTRALIA

CBA cops record $700m hit

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Original article by Michael Roddan, Pamela Williams
The Australian – Page: 1 & 2 : 5-Jun-18

The Commonwealth Bank of Australia has admitted to 53,750 breaches of the nation’s anti-money-laundering and counter-terrorism financing laws. CBA has agreed to pay a record fine of $A700m after reaching a settlement with Austrac. The civil penalty equates to about seven per cent of the bank’s profit for fiscal 2017. ­Austrac CEO Nicole Rose says the fine is "appropriate", while she adds that CBA needs to revamp its compliance systems more quickly than the five-year timeframe it has outlined. She has also warned that organised crime gangs are still actively targeting Australian banks.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF HOME AFFAIRS, AUSTRALIAN LABOR PARTY, REGAL FUNDS MANAGEMENT PTY LTD, CLSA AUSTRALIA PTY LTD, FEDERAL COURT OF AUSTRALIA

NAB investors kept in dark

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Original article by Sarah Danckert
The Age – Page: 23 : 28-Mar-18

National Australia Bank’s 2017 annual report included a contingent liability for measures aimed at ensuring compliance with anti-money laundering laws. However, the minutes of NAB’s risk committee meeting in November 2015 show that the bank was dealing with issues of non-compliance with anti-money laundering laws that had been identified by Austrac in an on-site compliance assessment in April of that year.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

CBA’s terror breaches after lawsuit

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Original article by Nicola Berkovic, Michael Roddan
The Australian – Page: 1 & 2 : 15-Dec-17

Austrac filed an amended statement of claim against the Commonwealth Bank of Australia on 14 December, alleging that there have been further breaches of anti-money laundering and terrorism financing laws since it first launched legal action against the bank. The new allegations include claims that CBA allowed money to be withdrawn from a bank account even though there were suspicions that the account-holder had links to terrorism. CBA has admitted to more than 53,000 of the breaches of money-laundering laws that Austrac had alleged in its original statement of claim.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY

Accusations ‘will hinder’ Crown probe

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Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 19-Oct-17

Justice Minister Michael Keenan says AUSTRAC will investigate allegations that casino operator Crown Resorts has breached anti-money laundering laws. However, law enforcement officials have expressed concern that any case against Crown could be jeopardised after independent MP Andrew Wilkie raised the allegations in parliament. Amongst other things, he said former Crown employees had claimed that the company’s casino in Melbourne has evaded financial transaction laws and modified its poker machines to ensure lower payouts.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, VICTORIAN COMMISSION FOR GAMBLING AND LIQUOR REGULATION

CBA faces investor class action

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Original article by James Frost
The Australian Financial Review – Page: 4 : 10-Oct-17

Andrew Watson of law firm Maurice Blackburn says its class action against the Commonwealth Bank could be the largest ever in Australia. The firm will seek compensation for retail and institutional investors who bought the bank’s shares between 1 July 2015 and 3 August 2017. The class action centres on the bank’s failure to make adequate disclosures regarding the money-laundering scandal. Austrac’s revelation that it was investigating the bank prompted a sharp fall in its share price.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MAURICE BLACKBURN PTY LTD, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, IMF BENTHAM LIMITED – ASX IMF

Funder backs CBA class action

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Original article by Michael Roddan
The Australian – Page: 23 : 6-Sep-17

Listed litigation fund IMF Bentham has agreed to provide financial backing for a proposed shareholder class action against the Commonwealth Bank of Australia. The major bank’s shares have shed more than 10 per cent since early August, when Austrac initiated legal action over the CBA’s failure to comply with money-laundering laws. The class action is being undertaken by law firm Maurice Blackburn, which estimates that CBA could face a potential payout of at least $A200m. CBA could also incur sanctions in other countries where it has a presence.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, IMF BENTHAM LIMITED – ASX IMF, MAURICE BLACKBURN PTY LTD, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, FEDERAL COURT OF AUSTRALIA, CLSA AUSTRALIA PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC

CBA needs outside CEO in ‘brutal market’

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Original article by Jonathan Shapiro, James Thomson
The Australian Financial Review – Page: 17 : 31-Aug-17

The Commonwealth Bank of Australia’s money laundering scandal has focused attention on succession planning, with CEO Ian Narev set to step down by mid-2018. Perennial’s John Murray says CBA should select an external candidate, as the market considers any internal contenders to be tainted by the scandal. Morningstar also expects Narev’s successor to be an external appointment. Meanwhile, National Australia Bank CEO Andrew Thorburn says the bank has stressed the importance of its culture and values in meetings with staff in recent months.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PERENNIAL VALUE MANAGEMENT AUSTRALIAN EQUITY FUND, MORNINGSTAR PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CREDIT SUISSE (AUSTRALIA) LIMITED, TRANS-TASMAN BUSINESS CIRCLE, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, BHP BILLITON LIMITED – ASX BHP, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, BORAL LIMITED – ASX BLD, DOWNER EDI LIMITED – ASX DOW

Foreign regulators focus on CBA

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Original article by Michael Roddan
The Australian – Page: 17 & 22 : 30-Aug-17

The Australian Prudential Regulation Authority’s inquiry into the Commonwealth Bank of Australia continues to weigh on the banking sector. There is concern that CBA may come under scrutiny by APRA’s overseas counterparts in the wake of its money-laundering scandal. Credit Suisse has reduced its share price target for CBA by 10 per cent and warned of a governance crisis at the bank. Brian Johnson of CLSA notes that CBA could potentially incur much harsher penalties in offshore jurisdictions for breaching money laundering laws than in Australia.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CREDIT SUISSE (AUSTRALIA) LIMITED, CLSA AUSTRALIA PTY LTD, ARGO INVESTMENTS LIMITED – ASX ARG, COMMINSURE, STORM FINANCIAL LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, FEDERAL COURT OF AUSTRALIA, HONG KONG (CHINA). MONETARY AUTHORITY, SINGAPORE. MONETARY AUTHORITY

CBA faces $200m-plus class action

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 17 & 21 : 24-Aug-17

Investors who bought shares in the Commonwealth Bank of Australia between 17 August 2015 and 3 August 2017 will be eligible to participate in a proposed class action over the bank’s money-laundering scandal. CBA’s share price has fallen by six per cent since Austrac filed legal action on 3 August, slashing the bank’s market capitalisation by around $A8bn. Maurice Blackburn’s class action is expected to focus on CBA’s disclosures regarding Austrac’s investigation into the money-laundering allegations.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, MAURICE BLACKBURN PTY LTD, IMF BENTHAM LIMITED – ASX IMF, FEDERAL COURT OF AUSTRALIA, COMMINSURE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, VELOCITY TRADE LIMITED, FITCH RATINGS LIMITED

Norris supports Comyn for CBA

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Original article by Richard Gluyas
The Australian – Page: 17 & 18 : 21-Aug-17

Former Commonwealth Bank of Australia CEO Ralph Norris favours appointing an internal candidate to succeed incumbent Ian Narev. Norris argues that there is less risk associated with an internal appointment, despite calls from some analysts for CBA to recruit someone from outside the bank in order to pursue cultural change in the wake of the money-laundering scandal. Norris favours appointing the head of CBA’s retail banking division, Matt Comyn, to succeed Narev.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, FEDERAL COURT OF AUSTRALIA, MEDIBANK PRIVATE LIMITED – ASX MPL, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ROYAL BANK OF SCOTLAND GROUP PLC