- ASIC has wrapped up its investigation into the Westpac Banking Corporation (WBC) money laundering scandal and decided not to take any further action
- Last year, AUSTRAC commenced civil proceedings against the bank, alleging it had breached anti-money laundering and counter-terrorism financing laws
- The bank later agreed to pay $1.3 billion to settle the case, after admitting to breaching the laws more than 23 million times
- Additionally, ASIC also launched its own investigation in relation to the AUSTRAC proceedings and was delegated certain enforcement powers by APRA
- After completing the investigation, the corporate watchdog has told the banking giant it doesn’t intend to take any enforcement action against either the company or individuals
- On the market this morning, Westpac is in the grey and trading at $19.56 per share
The Australian Securities and Investments Commission (ASIC) has wrapped up its investigation into the Westpac Banking Corporation (WBC) money laundering scandal, deciding to take no action.
The scandal
In November 2019, the Australian Transaction Reports and Analysis Centre (AUSTRAC) commenced civil proceedings against the bank, alleging it had breached anti-money laundering and counter-terrorism financing laws.
Following these allegations, CEO and Managing Director Brian Hartzer stepped down from his roles. Former Westpac Chief Financial Offer Peter King was appointed as interim CEO and later into the position that will permanently steer the bank through a period of reform.
In September 2020, Westpac agreed to pay $1.3 billion to settle the proceeding with AUSTRAC, after admitting it did breach anti-money laundering and counter-terrorism financing laws more than 23 million times.
ASIC investigation
Additionally, the corporate watchdog ASIC also launched its own investigation in November 2019 in relation to the AUSTRAC proceedings.
It was also delegated certain enforcement powers by the Australian Prudential Regulation Authority (APRA) concerns to the AUSTRAC proceedings and its own inquiries into potential contraventions of the Banking Act.
ASIC has now concluded its investigation and informed Westpac that it does not intend to pursue any enforcement action against either the bank or individuals.
On the market this morning, Westpac is in the grey and trading at $19.56 per share at 10:04 am AEDT.