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ANZ Bank Hit with Record A$240M Fine for Customer Trust Breaches

ANZ Bank faces historic A$240 million penalty for widespread misconduct affecting 65,000 customers, marking ASIC's largest-ever fine against a single entity. Bank admits to multiple breaches and unconscionable conduct.

ParJack Thompson
Publié le
#anz-bank#financial-misconduct#banking-regulation#australian-banks#corporate-accountability#asic-enforcement#financial-sector#customer-protection
Image d'illustration pour: Major Australian bank hit with record fine for widespread misconduct

ANZ Bank headquarters in Sydney as financial regulator ASIC announces record A$240 million penalty for misconduct

Australia's Fourth-Largest Bank Faces Historic Penalties for Misconduct

In a landmark enforcement action highlighting corporate accountability in Australia's financial sector, ANZ Bank has been ordered to pay A$240 million ($159.5 million) in penalties for widespread misconduct affecting tens of thousands of customers.

Multiple Violations Across Banking Operations

The Australian Securities and Investments Commission (ASIC) revealed on Monday that the penalties stem from four separate investigations into ANZ's institutional and retail divisions. The misconduct included:

  • Unconscionable conduct in dealings with federal government bond trading
  • Incorrect reporting of A$14 billion ($9.3 billion) bond deal management
  • Charging fees to deceased customers' accounts
  • Various breaches affecting approximately 65,000 customers

Record-Breaking Settlement Details

The settlement, pending Federal Court approval, comprises:

  • A$125 million ($83.1 million) for institutional and markets violations
  • A$115 million ($76.4 million) for retail banking breaches
"Time and time again, ANZ betrayed the trust of Australians," stated ASIC Chairman Joe Longo, emphasizing the unprecedented nature of the penalties.

This enforcement action comes as Australia's financial sector faces increased scrutiny and regulatory oversight, similar to recent developments in the Australian justice system's handling of major cases.

Bank's Response and Accountability Measures

ANZ Chairman Paul O'Sullivan has issued an apology for the "significant impact" on customers, confirming that several executives have been held accountable for these failures. The bank has committed to implementing stronger compliance measures and customer protection protocols.

Jack Thompson

Reporter based in Sydney, Jack covers climate issues, migration policies, and Australia's Indo-Pacific strategy.