AUSTRAC applied for civil penalty orders against the banking group following a series of lapses and oversights.
Australia’s anti-Money Laundering and terrorism financing regulator, AUSTRAC, has formally applied for civil penalty orders against Westpac Banking Corporation, per a regulatory report.
The orders focus on Westpac’s alleged non-compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
In particular, Westpac is facing allegations in lapses of oversight, specific to its banking and designated services. AUSTRAC’s civil penalty orders against Westpac also center on the oversight of its AML/CTF Program.
These were originally intended to identify and manage the money laundering and terrorism financing risks of its designated services, which were deemed lacking in its case to the Federal Court of Australia.
For its part AUSTRAC Chief Executive Officer, Nicole Rose defended the regulator’s decision following a lengthy investigation into Westpac.
“These AML/CTF laws are in place to protect Australia’s financial system, businesses and the community from criminal exploitation. Serious and systemic non-compliance leaves our financial system open to being exploited by criminals,” she noted.
AUSTRAC is stipulating that these oversight failures resulted in serious and systemic non-compliance with the AML/CTF Act on as many as 23 million occasions.
“The failure to pass on information about IFTIs to AUSTRAC undermines the integrity of Australia’s financial system and hinders AUSTRAC’s ability to track down the origins of financial transactions, when required to support police investigations.”
Failure on many fronts
A closer look at the orders reveals a list of lapses alleged of Westpac, including the following:
Adequately assessing and monitoring ongoing money laundering and terrorism financing risks associated with the movement of money into and out of Australia. AUSTRAC specifically highlighted Westpac’s correspondent banking relationships.
The orders allege Westpac failed to report over 19.5 million International Funds Transfer Instructions (IFTIs) to AUSTRAC over five years for transfers both into and out of Australia.
Westpac had improperly passed on information about the source of funds to other banks in the transfer chain. This conduct deprived the other banks of information they needed to understand the source of funds to manage their own AML/CTF risks.
During this period, records relating to the origin of some of these international funds transfers were notably absent.
Westpac also apparently failed to carry out appropriate customer due diligence on transactions to the Philippines and South East Asia. These areas are at a systematic risk for child exploitation.
What’s next for Westpac?
AUSTRAC holds a wide range of powers of enforcement, and in this case, the impending investigation could Yield multiple finalities for Westpac.
More specifically, AUSTRAC has the power to issue infringement notices, issue remedial directions, or force the banking group into taking specified actions.
Furthermore, the regulator can push for enforceable undertakings during which Westpac can comply with the AML/CTF Act or cease entirely. Finally, injunctions or penalties in Federal Court also cannot be ruled out.
Finance Magnates will continue to update this story as it develops.
Australia’s anti-Money Laundering and terrorism financing regulator, AUSTRAC, has formally applied for civil penalty orders against Westpac Banking Corporation, per a regulatory report.
The orders focus on Westpac’s alleged non-compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
In particular, Westpac is facing allegations in lapses of oversight, specific to its banking and designated services. AUSTRAC’s civil penalty orders against Westpac also center on the oversight of its AML/CTF Program.
These were originally intended to identify and manage the money laundering and terrorism financing risks of its designated services, which were deemed lacking in its case to the Federal Court of Australia.
For its part AUSTRAC Chief Executive Officer, Nicole Rose defended the regulator’s decision following a lengthy investigation into Westpac.
“These AML/CTF laws are in place to protect Australia’s financial system, businesses and the community from criminal exploitation. Serious and systemic non-compliance leaves our financial system open to being exploited by criminals,” she noted.
AUSTRAC is stipulating that these oversight failures resulted in serious and systemic non-compliance with the AML/CTF Act on as many as 23 million occasions.
“The failure to pass on information about IFTIs to AUSTRAC undermines the integrity of Australia’s financial system and hinders AUSTRAC’s ability to track down the origins of financial transactions, when required to support police investigations.”
Failure on many fronts
A closer look at the orders reveals a list of lapses alleged of Westpac, including the following:
Adequately assessing and monitoring ongoing money laundering and terrorism financing risks associated with the movement of money into and out of Australia. AUSTRAC specifically highlighted Westpac’s correspondent banking relationships.
The orders allege Westpac failed to report over 19.5 million International Funds Transfer Instructions (IFTIs) to AUSTRAC over five years for transfers both into and out of Australia.
Westpac had improperly passed on information about the source of funds to other banks in the transfer chain. This conduct deprived the other banks of information they needed to understand the source of funds to manage their own AML/CTF risks.
During this period, records relating to the origin of some of these international funds transfers were notably absent.
Westpac also apparently failed to carry out appropriate customer due diligence on transactions to the Philippines and South East Asia. These areas are at a systematic risk for child exploitation.
What’s next for Westpac?
AUSTRAC holds a wide range of powers of enforcement, and in this case, the impending investigation could Yield multiple finalities for Westpac.
More specifically, AUSTRAC has the power to issue infringement notices, issue remedial directions, or force the banking group into taking specified actions.
Furthermore, the regulator can push for enforceable undertakings during which Westpac can comply with the AML/CTF Act or cease entirely. Finally, injunctions or penalties in Federal Court also cannot be ruled out.
Finance Magnates will continue to update this story as it develops.
eToro Welcomes Back Naomi Rarmani as Head of Compliance Operations
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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