Money laundering: Australia’s NAB undergoing investigative issues on KYC, regulator involved
05 Nov 2018

Australian lender NAB is going through some ‘investigative’ issues regarding weaknesses in its financial crime controls and is communicating with financial watchdog AUSTRAC about the matter, according to its annual results.

NAB said it is also undergoing ‘remediation activities,’ and that it would also alert foreign regulators, where applicable.

“Investigation and remediation activities are currently occurring in relation to a number of identified issues, including certain weaknesses with the implementation of ‘Know Your Customer’ requirements, as well as systems and process issues that impacted transaction monitoring and reporting in some specific areas,” the bank stated.

“NAB continues to keep AUSTRAC (and where applicable, relevant foreign regulators) informed of its progress in resolving these issues, and will continue to cooperate with, and respond to queries from, such regulators.”

It added that, since July 2016, it has been working on improving its Group anti-money laundering (AML) and counter terror funding (CTF) program which involves ‘significant’ investment.

“In addition to a general uplift in capability, the program of work aims to remediate specific compliance issues and weaknesses as they are identified. When significant AML or CTF compliance issues are identified, they are notified to the Australian Transaction Reports and Analysis Centre (AUSTRAC) or equivalent foreign regulators,” NAB said.

News of NAB’s AML challenges come months after peer lender Commonwealth Bank (CBA) offered to pay a $700m (£400m; $530m) penalty for violating AML and CTF rules.

Irene Madongo

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