NAB faces ‘significant’ penalties for money laundering breaches
18 Nov 2019

NAB is facing a significant financial penalty from the financial intelligence regulator after self reporting a large number of breaches of anti-money laundering and counter-terrorism laws and says there may be more to come.

The bank is still working on fixing shortcomings within its anti-money laundering and counter-terrorism financing systems more than two years after flagging issues with know-your-customer requirements.

The bank said it self-reported “a number of issues” to the financial intelligence regulator and peer authorities after discovering the problems. It again flagged the potential for significant fallout in the bank’s annual report released this morning.

“Given the large volume of transactions that the group processes, the undetected failure of internal AML/CTF controls, or the ineffective implementation or remediation of compliance issues, could result in a significant number of breaches of AML/CTF obligations and significant monetary penalties,” the report reads.

NAB said it had recieved a number of requests to produce documents from various regulators after self reporting. It said it was investigating and fixing problems as they came to light.

The bank said it had identified weaknesses within its know-your-customer requirements, other unnamed financial crime risks as well as systems and processes that prevented proper transaction monitoring and reporting.

“As this work progresses, further issues may be identified and additional uplifting and strengthening may be required,” the bank said.

“The potential outcome and total costs associated with the investigation and remediation process for specific issues identified to date, and for any issues identified in the future, remain uncertain.”

NAB’s acting CEO and chairman elect Philip Chronican said at parliamentary hearings held in Canberra on Friday the issues related to those first identified off the bank of the CBA money laundering scandal.

By James Frost, The Australian Financial Review, 15 November 2019

Read more at The Australian Financial Review

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