- National Australia Bank (NAB) enters into a court-enforceable undertaking (EU) with AUSTRAC to address failures in the bank’s anti-money laundering and counter-terrorism financing (AML/CTF) laws
- Under the EU agreement, AUSTRAC will monitor NAB’s progress to ensure actions are taken within the required timeframe and maintain ongoing discussions with the bank
- NAB must complete a remedial action plan by December 31, 2024 as agreed under the EU
- An independent auditor will report to AUSTRAC annually on progress, with the final report to be provided by March 2025
- NAB assures that it has made improvements to the AML/CTF program and has taken steps to remediate high-risk customers as part of the Customer Identity Remediation program, expected to be delivered within the next 12 months
- NAB shares are down 1.1 per cent, trading at $32.27
National Australia Bank (NAB) has entered into a court-enforceable undertaking (EU) with AUSTRAC to address failures in the bank’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
Under the EU agreement, AUSTRAC will monitor NAB’s progress to ensure actions are taken within the required timeframe and maintain ongoing discussions with the bank.
NAB must complete a remedial action plan by December 31, 2024 as agreed in the EU.
An independent auditor will report to AUSTRAC annually on progress, with the final report to be provided by March 2025.
AUSTRAC CEO Nicole Rose said the undertaking aims to ensure NAB complies with laws and combats the risk of serious and organised crime.
“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,” said Ms Rose.
“NAB has worked collaboratively with AUSTRAC throughout the investigation, and this enforceable undertaking will help to ensure NAB meets its compliance and reporting obligations.”
The EU followed after an investigation was conducted by AUSTRAC in June 2021, which it had deemed financial penalties not considered and confirmed this position has not changed.
NAB CEO Ross McEwan reiterated that the bank takes AML/CTF obligations “very seriously” and will “continue to work closely with AUSTRAC as [NAB] deliver the agreed further actions.”
The banking corporation assures that it has made improvements to the AML/CTF program and has taken steps to remediate high-risk customers as part of the Customer Identity Remediation program, expected to be delivered within the next 12 months.
Other activities required “more time and resources”, the bank said.
NAB is assessing the likely costs of delivering the requirements of the EU and will provide an update at its Half Year Results on May 5.
NAB shares were down 1.1 per cent, trading at $32.27 as of 1:30 pm AEST.