Borrow
APRA drops big 4 money laundering case
APRA has followed ASIC in closing its investigation into Westpac over the AUSTRAC scandal, which led to the largest corporate fine in Australian history.
APRA drops big 4 money laundering case
APRA has followed ASIC in closing its investigation into Westpac over the AUSTRAC scandal, which led to the largest corporate fine in Australian history.
The prudential regulator says Westpac Banking Corp’s anti-money laundering failings did not amount to a breach of the Banking Executive Accountability Regime (BEAR) or the Banking Act and has closed its investigation, nearly three months after ASIC ceased its investigation.
APRA commenced its investigation in 2019 to examine prudential concerns arising from allegations that Westpac had breached anti-money laundering and counter-terrorism laws.
In 2019, it was revealed that Westpac failed to report millions of money transfers to AUSTRAC, including those which could be linked to child abuses overseas, resulting in a $1.3 billion fine in September last year.
The scandal saw a cleanout of Westpac’s executives, with then CEO Brian Hartzer and chairman Lindsay Maxsted leaving the bank.
Having “carefully considered” the result of ASIC’s investigation – to which it had delegated certain enforcement powers – APRA has closed its investigation.
Despite the investigation ending, APRA said it will keep in place an additional $1 billion capital “add-on” until the big four bank completes an independent review into its governance.
“Westpac remains subject to a court enforceable undertaking, while the $1 billion operational risk capital add-on, reflecting the bank’s ‘heightened operational risk profile’, will remain in place until Westpac completes its remediation,” APRA deputy chair John Lonsdale said.
Mr Lonsdale said although the investigation has not found evidence of breaches of the Banking Act or the BEAR, APRA remains determined to ensure Westpac rectifies its risk governance weaknesses effectively and sustainably.
“Under the enforceable undertaking, Westpac has clearly defined executive and board accountabilities for the implementation of its integrated risk governance remediation plan. APRA will be holding Westpac to account for the delivery of the required improvements,” Mr Lonsdale said.
RELATED ARTICLES
About the author
About the author
Banking
ANZ’s company-borrower mortgage clampdown: a risk reset with wide spillovers for SMEs, investors and non-banks
ANZ has tightened credit settings for home loans where the borrowing entity is a company — a narrow policy change with broad commercial consequences. It signals a shift in risk appetite across ...Read more
Banking
CBA’s investor-loan win signals a new phase in Australia’s mortgage machine
Commonwealth Bank’s outperformance in investor mortgages isn’t just a leaderboard moment; it’s a proxy for who owns the next growth leg in a broker‑led, increasingly digital mortgage marketRead more
Banking
A divided Big Four signals a two-track 2026: how to profit from rate uncertainty
Australia’s largest banks can’t agree on where the cash rate lands in 2026 — a split that matters more than the number itself. When the price of money is ambiguous, strategy becomes a game of ...Read more
Banking
Brokers own the mortgage funnel: Why a 77% share is reshaping bank strategy in Australia
Australia’s mortgage market has quietly consolidated around one gatekeeper: the broker. With brokers facilitating roughly 77% of new home loans, distribution power has migrated from bank branches to ...Read more
Banking
Commonwealth Bank leads consideration while People First Bank tops satisfaction in YouGov’s latest rankings
In a revealing snapshot of Australia's banking landscape, the Commonwealth Bank (CBA) has emerged as the most considered financial institution among prospective customers, according to YouGov's ...Read more
Banking
End of the easing: what a major bank’s call signals for Australian balance sheets
A major Australian bank now argues the Reserve Bank’s rate-cut run has hit a pause, resetting the risk-free rate narrative across corporate Australia. The Reserve Bank of Australia’s latest Statement ...Read more
Banking
Open banking, real returns: How an Australian brokerage turned CDR data into deal velocity
Open banking is no longer a whiteboard theory—it’s a working growth engine. This case study unpacks how a mid-sized Australian brokerage (“Pink Finance”) operationalised Consumer Data Right (CDR) data ...Read more
Banking
Open banking’s quiet revolution: how one broker’s data play rewrites speed, trust and margin
Open banking is shifting from compliance cost to commercial engine, and early adopters in Australia’s broking market are already monetising the curve. The playbook: consented bank-grade data piped ...Read more
Banking
ANZ’s company-borrower mortgage clampdown: a risk reset with wide spillovers for SMEs, investors and non-banks
ANZ has tightened credit settings for home loans where the borrowing entity is a company — a narrow policy change with broad commercial consequences. It signals a shift in risk appetite across ...Read more
Banking
CBA’s investor-loan win signals a new phase in Australia’s mortgage machine
Commonwealth Bank’s outperformance in investor mortgages isn’t just a leaderboard moment; it’s a proxy for who owns the next growth leg in a broker‑led, increasingly digital mortgage marketRead more
Banking
A divided Big Four signals a two-track 2026: how to profit from rate uncertainty
Australia’s largest banks can’t agree on where the cash rate lands in 2026 — a split that matters more than the number itself. When the price of money is ambiguous, strategy becomes a game of ...Read more
Banking
Brokers own the mortgage funnel: Why a 77% share is reshaping bank strategy in Australia
Australia’s mortgage market has quietly consolidated around one gatekeeper: the broker. With brokers facilitating roughly 77% of new home loans, distribution power has migrated from bank branches to ...Read more
Banking
Commonwealth Bank leads consideration while People First Bank tops satisfaction in YouGov’s latest rankings
In a revealing snapshot of Australia's banking landscape, the Commonwealth Bank (CBA) has emerged as the most considered financial institution among prospective customers, according to YouGov's ...Read more
Banking
End of the easing: what a major bank’s call signals for Australian balance sheets
A major Australian bank now argues the Reserve Bank’s rate-cut run has hit a pause, resetting the risk-free rate narrative across corporate Australia. The Reserve Bank of Australia’s latest Statement ...Read more
Banking
Open banking, real returns: How an Australian brokerage turned CDR data into deal velocity
Open banking is no longer a whiteboard theory—it’s a working growth engine. This case study unpacks how a mid-sized Australian brokerage (“Pink Finance”) operationalised Consumer Data Right (CDR) data ...Read more
Banking
Open banking’s quiet revolution: how one broker’s data play rewrites speed, trust and margin
Open banking is shifting from compliance cost to commercial engine, and early adopters in Australia’s broking market are already monetising the curve. The playbook: consented bank-grade data piped ...Read more
