Thursday, 3 August 2017

Australia's biggest mortgage lender Commonwealth Bank faces fines over anti-laundering laws

Australia's biggest mortgage lender has been accused of massive breaches of anti-money laundering laws.

The country's financial intelligence agency launched proceedings on Thursday against Commonwealth Bank for 53,700 alleged breaches.

The proceedings relate to the bank's intelligent deposit machines (IDMs), which were allegedly used by criminal syndicates to launder money.

The bank could face huge financial penalties over the breaches.

The Australian Transactions Reports and Analysis Centre (Austrac) said the machines facilitated anonymous cash deposits, because the cardholder's details are not known to Commonwealth Bank unless he or she is a customer.
The machines can accept up to 20,000 Australian dollars (£11,976; $15,845) per cash transaction and there is no limit on the number of daily transactions.

The machines count the deposits and instantly credit them to the nominated account, making them available for immediate transfer domestically or overseas.

BBC    News.