ANZ Bank Fined A$240M for Bond Deal Misconduct and Customer Breaches
ANZ Bank faces historic A$240 million penalty for systemic failures including bond trading misconduct and charging deceased customers, marking ASIC's largest-ever fine against a single entity.
ANZ Bank headquarters in Sydney as bank faces record A$240 million regulatory penalty
Australia's fourth-largest bank, ANZ Group, has agreed to pay a record A$240 million (RM672 million) in penalties for multiple systemic failures, including misconduct in government bond trading and charging deceased customers. This marks the largest penalty ever imposed by ASIC on a single entity.
Bond Trading Misconduct and Customer Trust Violations
The settlement, announced yesterday and pending Federal Court approval, addresses five separate investigations across ANZ's Australian Markets and Retail divisions. A key violation centered on the bank's conduct during a A$14 billion government bond issuance in April 2023, where ANZ's trading practices placed undue downward pressure on bond prices.
"Time and time again ANZ betrayed the trust of Australians," stated ASIC chair Joe Longo. "As far as the unconscionable conduct is concerned, it was clearly grubby."
Systemic Customer Service Failures
The violations extend beyond trading misconduct, reflecting broader issues in customer protection and service delivery. Between July 2013 and January 2024, ANZ failed to:
- Pay promised bonus interest to new account holders
- Stop charging fees to deceased customers
- Properly identify and refund post-death charges
Corporate Response and Reform Plans
ANZ Chair Paul O'Sullivan acknowledged the bank's failures, offering an unreserved apology to customers. The announcement comes as ANZ undergoes significant operational changes, including recently announced job cuts of 3,500 positions under new CEO Nuno Matos.
The bank's transformation efforts mirror broader changes in Australia's retail banking sector, where major institutions are adapting their business models to meet enhanced regulatory requirements and restore public trust.
Financial Impact and Future Compliance
ANZ will submit a remediation plan to the Australian Prudential Regulation Authority by month's end, with an expected implementation cost of A$150 million through September 2026. The bank's shares closed 0.6% lower following the announcement, while the broader market showed minimal impact.
Jack Thompson
Reporter based in Sydney, Jack covers climate issues, migration policies, and Australia's Indo-Pacific strategy.