Citi Sent 99pc of Westpac Transfers That Breached AUSTRAC Requirements
04 Dec 2019

Citigroup has been identified as one of the four correspondent banks in AUSTRAC’s filing against Westpac, initially referred to as ‘Bank A’ in its statement of claim.

According to Investor Daily, the Citi transactions came from one of its European arms, using Westpac to clear the payments and to transfer money to accounts in Australia.

Westpac is said to have provided clearing for Citi’s overseas subsidiaries until a year ago. The transactions mostly consisted of payments from foreign governments to pensioners in Australia, multinationals making payments into the country and Australian e-commerce retailers receiving funds.

Citi is not under investigation in relation to the Westpac scandal, though AUSTRAC’s court filing criticised the bank for not providing sufficient information about the payments and the source of funds.

Citi is said to be responsible for more than 99 percent of Westpac’s alleged 23 million transactions that breached the reporting standards.

But Citi was not responsible for the errors at Westpac that prevented the bank from reporting 19.4 million transfers totalling AUD 11.1 billion into Australia, reported AFR.

Other Westpac errors reportedly deleted a further 3.5 million records of Citi transfers in its back-up system.

The errors were caused by software glitches in Westpac’s monitoring systems, AUSTRAC had said in court documents.

Read more at Regulation Asia

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