Pressure for royal commission rises on CBA laundering scandal maximum penalty for money laundering

Prime minister malcolm turnbull faces a new round of pressure for a royal commission into the banks after last week’s explosive claims the commonwealth bank broke anti-money laundering laws, allegations labor says are extremely serious and deeply concerning.

The step-up in labor’s rhetoric came as powerful cross-bench senator nick xenophon said a bank royal commission was all but inevitable in the next parliamentary term at the latest, and pushed for tougher penalties for reckless bankers.

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CBA chief executive ian narev says the austrac action against the bank shows a regulator being strong. Photo: bloomberg

Amid the mounting political pressure and a sell-off in CBA shares before its results this week, chief executive ian narev on sunday broke his public silence, seeking to downplay the push for a royal commission.Maximum penalty for money laundering

He told the the australian financial review the bank had made mistakes but the allegations from austrac showed a strong regulator doing its job.

In a landmark action, financial intelligence agency austrac last week claimed CBA breached anti-money laundering rules repeatedly, with problems in its systems exploited by criminal gangs who put millions into its atms and sent the money overseas.

With CBA to this week deliver a forecast $9.8 billion profit, supporters of a bank royal commission seized on the claims on sunday.

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While the government has repeatedly refused call a bank royal commission, which is opposition policy, senator xenophon said the CBA allegations would be used by the opposition and minor parties to remind the government of its timidity.

This latest scandal makes it all but inevitable there will be a royal commission into the banks, if not in this parliament, in the next, he said

maximum penalty for money laundering

If the government wants to cauterise this issue, they should agree to bipartisan terms of reference for a royal commission, said senator xenophon, who also suggested law changes that would mean reckless bank executives could face jail time.

Treasurer scott morrison said last week: this is a very serious matter that is being pursued by appropriate authorities, we should allow them to do this work.

Labor senator sam dastyari claimed the inevitability of a royal commission only increases when there is scandal after scandal, and failure after failure.

If there is a case for there not being a royal commission, no one is making it anymore, he said.

Nationals senator john williams said the CBA allegations were yet to be tested in court, but if CBA was found lacking mr narev needed to take responsibility.

If they are proven to be guilty, then of course the buck stops with the boss, said senator williams, a persistent supporter of a royal commission into banks.Maximum penalty for money laundering

It always comes back to the boss. Ian is the CEO of CBA, no doubt responsibility comes back to him.

Mr narev’s first comments to the media on sunday said the bank had made mistakes but allegations were a strong regulator being seen to be very forceful rather than a reflection of cultural problems.

After CBA shares slumped 3.9 per cent on friday, some in the financial markets believe CBA should have disclosed the issue earlier than it did. News of the action was not provided on the stock exchange platform until friday, after austrac filed its claim on thursday.

I see this as a failure of timely disclosure of a material event as evidenced by the share price reaction, said velocity trade senior banking analyst brett le mesurier.

It is another one in a series of events leading to a questionable culture, which is starting to make them look like the error-ridden bank that NAB once was.Maximum penalty for money laundering they are grabbing that mantle with both hands. In short it is disturbing and significant.

An ASX spokesman last week said companies must disclose information when it is material, and the company was best-placed to make this judgement.

CBA, australia’s biggest company, is widely-held by retail investors and stephen mayne of the australian shareholders association called on ms livingstone to step up and start communicating.

A legally-driven bunker mentality is not acceptable given the scale and seriousness of the allegations, mr mayne said.

Prime minister malcolm turnbull faces a new round of pressure for a royal commission into the banks after last week’s explosive claims the commonwealth bank broke anti-money laundering laws, allegations labor says are extremely serious and deeply concerning.

The step-up in labor’s rhetoric came as powerful cross-bench senator nick xenophon said a bank royal commission was all but inevitable in the next parliamentary term at the latest, and pushed for tougher penalties for reckless bankers.Maximum penalty for money laundering

• SHARE

• share on facebook SHARE

• share on twitter TWEET

• link

CBA chief executive ian narev says the austrac action against the bank shows a regulator being strong. Photo: bloomberg

Amid the mounting political pressure and a sell-off in CBA shares before its results this week, chief executive ian narev on sunday broke his public silence, seeking to downplay the push for a royal commission.

He told the the australian financial review the bank had made mistakes but the allegations from austrac showed a strong regulator doing its job.

In a landmark action, financial intelligence agency austrac last week claimed CBA breached anti-money laundering rules repeatedly, with problems in its systems exploited by criminal gangs who put millions into its atms and sent the money overseas.

With CBA to this week deliver a forecast $9.8 billion profit, supporters of a bank royal commission seized on the claims on sunday.Maximum penalty for money laundering

By submitting your email you are agreeing to fairfax media’s

Terms and conditions

And

Privacy policy.

While the government has repeatedly refused call a bank royal commission, which is opposition policy, senator xenophon said the CBA allegations would be used by the opposition and minor parties to remind the government of its timidity.

This latest scandal makes it all but inevitable there will be a royal commission into the banks, if not in this parliament, in the next, he said

If the government wants to cauterise this issue, they should agree to bipartisan terms of reference for a royal commission, said senator xenophon, who also suggested law changes that would mean reckless bank executives could face jail time.

Treasurer scott morrison said last week: this is a very serious matter that is being pursued by appropriate authorities, we should allow them to do this work.Maximum penalty for money laundering

Labor senator sam dastyari claimed the inevitability of a royal commission only increases when there is scandal after scandal, and failure after failure.

If there is a case for there not being a royal commission, no one is making it anymore, he said.

Nationals senator john williams said the CBA allegations were yet to be tested in court, but if CBA was found lacking mr narev needed to take responsibility.

If they are proven to be guilty, then of course the buck stops with the boss, said senator williams, a persistent supporter of a royal commission into banks.

It always comes back to the boss. Ian is the CEO of CBA, no doubt responsibility comes back to him.

Mr narev’s first comments to the media on sunday said the bank had made mistakes but allegations were a strong regulator being seen to be very forceful rather than a reflection of cultural problems.

Maximum penalty for money laundering

After CBA shares slumped 3.9 per cent on friday, some in the financial markets believe CBA should have disclosed the issue earlier than it did. News of the action was not provided on the stock exchange platform until friday, after austrac filed its claim on thursday.

I see this as a failure of timely disclosure of a material event as evidenced by the share price reaction, said velocity trade senior banking analyst brett le mesurier.

It is another one in a series of events leading to a questionable culture, which is starting to make them look like the error-ridden bank that NAB once was. They are grabbing that mantle with both hands. In short it is disturbing and significant.

An ASX spokesman last week said companies must disclose information when it is material, and the company was best-placed to make this judgement.

CBA, australia’s biggest company, is widely-held by retail investors and stephen mayne of the australian shareholders association called on ms livingstone to step up and start communicating.Maximum penalty for money laundering

A legally-driven bunker mentality is not acceptable given the scale and seriousness of the allegations, mr mayne said.