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Hedge Clippings | Friday 29 November, 2019
When it comes to Big Banks, Hedge Clippings is frequently shocked, often surprised, but rarely astounded.
Westpac's alleged breaking of AML/KYC regulations a staggering 23 million times for a total value of $11 billion changes all that. Furthermore, the fact that the board was aware of the issue for some time, having reported itself to AUSTRAC, leaves one wondering how much communication or control the board has, or had, over the business or management.
Setting up a financial crimes committee seems somewhat like closing the stable door long after the horse has bolted, and one can only wonder about the atmosphere at WBC head office right now.
Compounding the issue with child sex exploitation adds to their issues, as it would seem does the recent capital raising with ASIC rightfully asking if the market was properly informed - which of course it wasn't.
Brian Hartzer's timing of his acceptance of the top job at Westpac couldn't have been worse, and Gail Kelly's retirement couldn't have been better. But it's worth remembering Westpac's AML woes go back a long way.
So, we now have three of Australia's top financial institutions - CBA, AMP and Westpac - with their corporate reputations' In tatters. No doubt ANZ and NAB will be nervously auditing their own processes as a matter of some urgency.
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