The National Australia Bank is being investigated by national financial crime regulators for breaking money laundering laws as part of a broader crackdown on organized crime.
Australia’s third-largest market capitalization company said Monday that Australia has begun a formal investigation into its compliance with anti-money laundering and anti-terrorism laws. The casino groups Crown Resorts, Star Entertainment Group and Sky City Entertainment Group are also under investigation, he said.
The investigation is part of an extensive campaign by authorities aimed at organized crime revenue, focusing on financial institutions, casinos and crypto exchanges.
Nicole Rose, CEO of Austrac, said the agency’s efforts involve all levels of government and the financial sector.
“It is only these combined efforts that have led to criminal investigations and convictions that impede the ability of criminals to benefit from crime. If a system or process fails, Australia has our regulatory and enforcement powers. Don’t hesitate to take advantage of it, “she says. Opinion piece In an Australian newspaper.
$ 1 billion
A record fine paid by Westpac last year in a money laundering case
Austrac said it began investigating the NAB after identifying “serious concerns” about lenders’ compliance with anti-money laundering regulations. Austrac believes that NAB’s customer identification procedures and due diligence, as well as compliance with the bank’s compliance regime, are “potentially serious and ongoing non-compliance.”
Austrac said it has not considered civil penalties for NAB, but this is subject to change. The decision “reflects the work undertaken by the bank,” he added.
The Australian banking sector has been shaken in recent years by the Commonwealth Bank and Westpac Bank’s investigation into anti-money laundering legislation.
Westpac Bank paid A record A $ 1.3 billion ($ 920 million) fine last year that banks were found to have encouraged the exploitation of children to settle a lawsuit related to money laundering. The proceedings filed by Austrac Resignation Brian Hartzer became CEO of the bank and Chair Lindsay Maxted retired early.
Austrac’s research Los McEwan, NAB CEO and former president of the Royal Bank of Scotland, who has been trying to address compliance issues since taking office in December 2019.
NAB’s share price fell more than 3% in a transaction in Sydney on Monday afternoon.
Nathan Zia, an analyst at Research Group Morning Star, said disclosures that Austrak was concerned about non-compliance at NAB were a concern.
“After what happened at Westpack, record penalties and a significant rise in compliance costs, the market has become quite nervous about what this means for NAB,” he said.
The stock prices of casino operators Sky City, Crown and Star fell 8.5%, 1.8% and 3.8%, respectively.
The topic crown Acquisition negotiationsSaid that from 2012 to 2016, he received legal advice that he broke the law by allowing foreign guests at the hotel to order gambling chips using their credit or debit cards. Crown said it traded A $ 160 million in this way, which was illegal and ended in November 2016.
Australia’s NAB faces money laundering probe Source link Australia’s NAB faces money laundering probe