“I wish to apologise sincerely for the financial institution’s failings,” CEO Peter King stated in an announcement. “We’re dedicated to fixing these points to make sure that these errors don’t occur once more. This has been my primary precedence.”
Westpac shares slumped Thursday in Sydney, and had been final buying and selling down about 1%.
Australian regulators pursued authorized motion in opposition to Westpac practically a yr in the past after they stated the financial institution did not report tens of millions of directions for monetary transfers out and in of Australia.
The regulatory watchdog stated on the time that Westpac uncared for to do its due diligence on transactions to the Philippines and different elements of Southeast Asia “which have identified monetary indicators regarding potential baby exploitation.”
The allegations rocked the financial institution and led to the resignation of former CEO Brian Hartzer final November.
The penalty displays the “critical and systemic nature” of Westpac’s non-compliance, AUSTRAC stated in an announcement Thursday.
“We have now been, and can proceed to work collaboratively with Westpac and all companies we regulate to help them to fulfill their compliance and reporting obligations to make sure this does not occur once more sooner or later,” stated AUSTRAC chief government Nicole Rose.
— Angus Watson contributed to this report.