How Westpac’s record-breaking high quality compares to others

How Westpac's record-breaking fine compares to others

If an organization’s fame will not be sufficient of a carrot to make sure greatest (or lawful) follow, penalties are the hard-stick reply. But how does AUSTRAC’s newest high quality examine to others?

1. Commonwealth Bank

CBA was fined $700 million in 2018 by AUSTRAC for breaching anti-money laundering legal guidelines 53,506 instances after its uncapped cash-deposit machines allowed medicine and arms sellers to scrub their money.

The board should have been rethinking the selection to name these machines “intelligent deposit ATMs”. But it pales into insignificance when in comparison with Westpac’s 23 million breaches of the identical Act.

2. Volkswagen

The German carmaker greatest recognized for its Golfs was fined $125 million by the Australian Competition and Consumer Commission (ACCC) for deceptive shoppers about its diesel emissions.

3. NAB

The Federal Court imposed a $57.7 million penalty this 12 months on NAB after it admitted to deceptive, false and misleading conduct for charging $117 million price of charges to superannuation fund members for providers that had been by no means offered.

4. Tabcorp

Again stung by AUSTRAC, the betting large coughed up $45 million for breaking anti-money laundering legal guidelines after failing to alert regulators to stories of suspicious prospects on 108 events over greater than 5 years.

5. Visy

Packaging large Visy was fined $36 million for partaking in a four-year price-fixing and cartel scheme with packaging rival Amcor, which is known to have elevated Visy’s market share from 47 per cent to 55 per cent over quite a few years and affected 90 per cent of the $1.Eight billion cardboard field market.


ANZ and NAB had been every fined $10 million by the Federal Court in 2017 after the banks had been discovered to have tried to have interaction in unconscionable conduct in making an attempt to control the Bank Bill Swap Rate – used as a benchmark for the pricing of many business merchandise – to profit their establishments’ buying and selling positions.

7. Westpac

Westpac was fined $9.15 million in 2019 after the Australian Securities and Investments Commissions (ASIC) discovered one in all its monetary planners, Sudhir Sinha, had breached the Corporations Act 22 instances. The planner offered improper recommendation and didn’t act in one of the best pursuits of purchasers and Westpac was discovered to haven’t correctly supervised or monitored him.

8. State Street

Global funding large State Street was fined $1.25 million this month for failing to report data associated to its worldwide funds, breaching anti-money laundering laws. State Street insiders mentioned the regulator was making an instance out of them as the corporate had self-reported the problem and was fast to repair its techniques.

9. MoneyGram

Cash switch service MoneyGram was hit with two AUSTRAC fines in 2015 that totalled near half one million {dollars} ($459,000). Both fines had been for offering cash remittance providers by unregistered remittance companies, and on the time had been described as the most important high quality handed down by AUSTRAC because it was arrange in 1989.

10. RIA Financial Services

The cash switch firm was fined $225,600 by AUSTRAC in 2017 for failing to have all its associates registered with the regulator and for persevering with to supply providers by companies not registered as Ria associates. Then-AUSTRAC chief government John Schmidt mentioned on the time: “The money remittance sector is recognised internationally as being particularly vulnerable to exploitation by criminals.”

11. Volkswagen

The carmaker’s finance arm was fined $216,000 in 2017 by ASIC for operating a deceptive promoting marketing campaign about automobile financing offers. Always learn the high quality print.

12. Super funds

Hostplus was fined $12,600 by ASIC in 2019 after it made deceptive claims about providing ‘unbiased recommendation’ in a recorded phone message on Hostplus’ essential client phone quantity.

The tremendous fund for hospitality staff was providing recommendation by Industry Fund Services Limited however an ASIC investigation discovered this was not actually “independent” as Hostplus staff had been appointed as authorised representatives to supply monetary recommendation underneath IFS’ license and the fund paid charges to IFS for these providers.

Media Super was fined $10,200 in 2014 by ASIC for publishing an advert as a factsheet the place it inaccurately represented the prices and advantages of the Media Super funds in comparison with self-managed tremendous funds.

13. ClassicBet

The on-line bookmaker was fined $10,200 by AUSTRAC for failing to use for enrolment on AUSTRAC’s Reporting Entities Roll throughout the timeframe required after commencing operations in 2014.

14. MFS Investments

Directors of one in all Australia’s largest monetary collapses had been ordered to pay $615 million in 2017 in compensation to 1000’s of retirees who put their life financial savings right into a fund that collapsed in 2008. Not a penalty however price noting – ripping individuals off is dear.

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