Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Commonwealth Bank Of Australia (CBA) To Pay A $700 Million Fine With AUSTRAC

Commonwealth Bank of Australia (ASX:CBA) has settled the AUSTRAC case for $700 million.

Commonwealth Bank of Australia (ASX: CBA) announced today that it has entered into an agreement with AUSTRAC, the Australian Government’s financial intelligence agency, to resolve the civil proceedings in the Federal Court.

According to AUSTRAC and Australia’s largest bank, CBA, the bank:

  • Made 53,506 late filings for threshold transaction reports for cash deposits at its ATMs
  • Had inadequate adherence to risk assessment requirements 14 times
  • Did not monitor transactions as intended between October 2012 and October 2015
  • There were 149 suspicious matter reports filed late or not filed
  • Ongoing customer due diligence requirements were breached in respect of 80 customers

As a result of its misdemeanours, CBA will pay a penalty of $700 million and AUSTRAC’s legal costs of $2.5 million. This settlement follows the recent scrutiny that the big banks are under from the Royal Commission.

CBA CEO, Matt Comyn, said: “While not deliberate, we fully appreciate the seriousness of the mistakes we made. Our agreement today is a clear acknowledgement of our failures and is an important step towards moving the bank forward.”

On behalf of Commonwealth Bank, I apologise to the community for letting them down. – Comyn

The CBA share price has risen by 2.15% in early trade, according to Google Finance. 

CBA had already accounted for an estimated penalty of $375 million in the half-year accounts, meaning its accountants had already adjusted its financial results for some anticipated penalties.

What would Warren Buffett do? Get a free Aussie investing ebook from The Rask Group! Download the free ebook, “What Buffett’s Investing Checklist Can Teach Aussie Investors“ when you join the free Investor Club. Then, get ready to laugh and learn.

Click here to join The Rask Group’s Investor Club Newsletter and Download The Ebook!

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content