Commonwealth Bank chairman Catherine Livingstone says there could be further “accountability consequences” ahead within the bank over the money laundering scandal.
She was speaking to the the House of Representatives Standing Committee on Economics which is conducting public hearings with Australia’s four major banks as part of its review of the banking sector.
The Commonwealth Bank of Australia is in the Federal Court, accused of breaching the Anti-Money Laundering and Counter-Terrorism Financing Act over combined cash deposits of $624.7 million via smart ATMs.
“I can assure the committee that, as we do the work to understand the underlying causes and issues there will be further accountability consequences as necessary,” she told the members of parliament.
“I also assure you that we are working co-operatively with all of our regulators.”
Livingstone says senior executive lost their short-term bonuses and the board imposed a 20% cut in its 2017 directors’ fees.
“While we are constrained for legal reasons in what we can say, I can assure the Committee that the Board is taking these matters extremely seriously and is responding appropriately,” she says
“Immediately after we learned of the AUSTRAC (Australia’s financial intelligence and regulatory agency) proceedings in August, the Board established a dedicated sub-committee to review and oversee the Group’s response.
“This oversight includes not only the response to the AUSTRAC claims, but importantly, to the ongoing Program of Action designed to improve our Financial Crime Compliance systems and processes, and ensure that we not just meet, but that we exceed our compliance obligations.”
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.