LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

CBA hit with second regulatory probe after money laundering claims

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Mon, Aug 28, 2017
12:08 pm
Reuters
RELATED NEWS
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here

Commonwealth Bank of Australia, the nation`s biggest lender, has been hit with a public inquiry into its governance and culture - the second regulatory probe to be launched this month after it was accused of massive breaches of money-laundering rules.

The move represents the first time that the Australian Prudential Regulation Authority will hold a public inquiry into a lender and heightens pressure on the government to hold a broad parliamentary probe - known as a Royal Commission - into the banking sector.

CBA was sued this month by financial intelligence agency AUSTRAC which alleges that criminals and terror financiers laundered millions of dollars through CBA accounts - the first lawsuit of it kind against a major Australian bank and exposing CBA to a fine potentially amounting to billions of dollars.

Since then, the Australian Securities and Investment Commission has launched a separate probe while a class action law firm is planning a suit on behalf of shareholders. The bank has also flagged that CEO Ian Narev will retire by next June.

"The overarching goal of the prudential inquiry is to identify any core organisational and cultural drivers at the heart of these issues," APRA Chairman Wayne Byres said, adding that CBA will pay for the costs of the six-month probe.

Narev, whose tenure as been marked by both record profits and misconduct scandals on the part of the bank, told reporters the bank supported the inquiry and he expected it would address "the way in which financial objectives are balanced by other objectives and assessed in target performance."

Shares in the bank were trading down 1 percent at 9-month lows on Monday afternoon. CBA, which blames a software coding error for its alleged failure to detect nearly 54,000 suspicious transactions, has lost roughly 10 percent or A$12.5 billion ($9.9 billion) of its market value since the AUSTRAC allegations first came to light on Aug. 3.

"For CommBank shareholders there`s going to be a real dollar cost to all of this. Also, you can safely say that professional and legal fees for this organisation are not going down," said CLSA banking analyst Brian Johnson.

APRA`s announcement immediately fuelled fresh calls for a Royal Commission into Australia`s banking system, which would have judicial powers such as calling witnesses and the right to recommend greater regulation or even criminal charges.

"The Govt has done everything it can to protect the banks, but is now out of excuses. We need a Royal Commission," Labor leader Bill Shorten tweeted on Monday.

Treasurer Scott Morrison, whose ruling conservative party opposes a Royal Commission, said the APRA investigation showed Australia`s existing regulatory regime had sufficient power to pursue civil penalties.

"The things that a Royal Commission could potentially recommend: we`re already doing that," Morrison told reporters.

Judith Fox, the head of the Australian Shareholders` Association which represents retail investors, said the association would prefer to see the outcome of the various probes before assessing whether a Royal Commission was needed.

The money-laundering allegations represent the third misconduct scandal under Narev. Last year, CBA admitted to using unscrupulous practices that cheated people out of life insurance payments, and in 2014 Narev publicly apologised after CBA advisors were found to have given customers poor financial advice.

($1 = 1.2601 Australian dollars)

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged RBI Monetary Policy Review: Shaktikanta Das led panel keeps policy rates unchanged
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here

LATEST NEWS

Covid 19 symptoms: What is the right oxygen saturation level, when should you see a doctor—EXPLAINED

WhatsApp Pink - a new virus now threatens users accounts; find out what it is and how to stay safe

7th Pay Commission Latest News Today: BUMPER! Earn up to Rs 1.19 lakh as per 7th cpc matrix with HRA, DA, TA in this UPSC recruitment 2021 drive

Will Gold price touch Rs 50000 level? All the details you need to know now

Southern Railway Paramedical Staff Recruitment 2021: Earn up to Rs 44,900 plus DA and other allowances for 191 vacant posts - check notification at official website

Anil Singhvi picks Strides Pharma as his 'SIP STOCK' today, know the reason WHY

KVS Class 1 Admission List 2021-22 Postponed: First selection and waiting list was to be released tomorrow, revised dates to be notified soon - check all details here

L&T construction bags order in 'significant category ranging between Rs 1,000 crore and Rs 2,500 crore from Oilfields Supply Company Saudi

COVID-19: Hospitals in Delhi-NCR short on oxygen, send SOS to Govt - All details here

Amarnath Yatra registration suspended; window to register for 56 day-yatra to reopen after assessing Covid-19 situation on later date

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved