NAB to Implement Remedial Actions Following Agreement with Financial Crime Regulator
SYDNEY: On Monday, May 2, National Australia Bank (NAB) announced that it had entered into an agreement with Australia’s financial crime regulator, Austrac, to resolve concerns related to suspected serious breaches of anti-money laundering and counter-terrorism laws.
The investigation into NAB began in June of the previous year, sparking worries about potential penalties and escalating compliance costs for the lender. The Australian Transaction Reports and Analysis Centre (Austrac) has been examining NAB’s practices, and the bank has now committed to completing a comprehensive remedial action plan by December 2024. Furthermore, NAB will appoint an external auditor to assess the progress and deliver a final report by March 2025.
In response to the ongoing issues, NAB’s CEO, Ross McEwan, acknowledged that the bank had taken longer than expected to address the concerns raised. However, he welcomed Austrac’s recognition of the substantial efforts made so far, while agreeing that further work is necessary to resolve the matter fully.
The investigation into NAB’s compliance with anti-money laundering laws forms part of the broader fallout from the 2018 Royal Commission inquiry, which revealed widespread misconduct in Australia’s financial sector. Since then, other major Australian banks, including Commonwealth Bank and Westpac, have been penalised with fines totaling A$2 billion (S$1.96 billion) by Austrac.
NAB has indicated that it will provide further updates on the financial impact of this agreement in its upcoming half-year results.
