🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

UPDATE 1-Australian regulator says money-laundering case no challenge to CBA stability

Published 13/09/2017, 01:21 pm
© Reuters.  UPDATE 1-Australian regulator says money-laundering case no challenge to CBA stability
AXJO
-
PRU
-
CBA
-

* APRA focused on prudential consequences of money-laundering case

* 'No suggestion' issue threatens soundness of bank - APRA chair

* CBA shares have fallen 9 pct since scandal broke (Adds quotes, background and share price)

By Tom Westbrook

SYDNEY, Sept 13 (Reuters) - Australia's prudential regulator said on Wednesday that money-laundering accusations levelled at the Commonwealth Bank of Australia CBA.AX do not challenge the bank's viability.

The country's biggest lender was sued by financial intelligence agency AUSTRAC on Aug. 3 over 53,700 suspected breaches of money-laundering laws between 2012 and 2015. case is the biggest of its kind in Australian corporate history, potentially exposing the bank to billions of dollars in fines.

Australian Prudential (LON:PRU) Regulation Authority (APRA) Chairman Wayne Byers told a parliamentary committee in Canberra the bank was "financially sound" despite recent falls in its share price.

"Our focus is on the prudential standing of the bank ... there isn't any suggestion that this is an issue that threatens the soundness of the bank," Byers said.

"It's had negligible impact in terms of loss of customers, loss of deposits, or any other impact that would make a material difference to the viability of the bank."

CBA has shed A$14.3 billion ($11.5 billion), or 9 percent, of its market value since the AUSTRAC case was lodged. It has blamed a coding error for most of the suspicious transactions and plans to defend itself in court.

APRA has launched its own inquiry in to culture and risk management at CBA in the wake of the AUSTRAC proceedings, while corporate regulator the Australian Securities and Investment Commission (ASIC) is also investigating the bank.

ASIC Chairman Greg Medcraft said on Tuesday that improving the culture and conduct of Australia's biggest banks was "unfinished businesses" as he prepares to step down in November. is also facing a class action law suit from shareholders who allege it failed to keep them informed of money laundering issues. bank's shares rose 0.9 percent to A$76.55 by lunchtime on Wednesday, in line with other financial stocks while the broader market .AXJO edged higher.

A CBA spokesman declined to comment. ($1 = 1.2456 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.