CBA board sets up committee in response to AUSTRAC

CBA board sets up committee in response to AUSTRAC
The Commonwealth Bank board has responded to the money laundering scandal by established a new sub-committee of four directors.

The committee will oversee the bank’s response to the statement of claim from the Australian Transaction Reports and Analysis Centre (AUSTRAC) which filed a motion in the Federal Court last week to prosecute the bank for allegedly perpetrating over 53,700 contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

In a statement to the market, CBA chair Catherine Livingstone said the bank had upgraded its financial crime technology to monitor suspicious accounts and had commenced the upgrade of additional fraud monitoring technology.

This comes after the Treasurer Scott Morrison warned Ms Livingstone that the government was prepared to “consider all options” when ti came to further action against the bank.

Ms Livingstone said the board, chief executive officer and executives all took “collective responsibility” for the bank’s reputation.

“The board notes that it has no reason to believe that the allegations arose from deliberate or unethical behaviour, or any commercial motive,” Ms Livingstone said.


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