NAB has identified weaknesses in its anti-money laundering systems

  • The NAB says it has for the last two years been strengthening its anti-money laundering systems.
  • The bank is currently working on “a number of identified issues”.
  • This includes “weaknesses” in the bank’s Anti-Money Laundering and Counter-Terrorist Financing program.

The NAB is working with Australian regulators to close “weaknesses” in the bank’s anti-money laundering systems, including issues with transaction monitoring.

The bank says it has been working with AUSTRAC, the Australian Government’s financial intelligence agency, to strengthen its Anti-Money Laundering and Counter-Terrorist Financing programs.

The work is revealed in the bank’s Contingent Liabilities, reported within the NAB’s annual results.

“Investigation and remediation activities are currently occurring in relation to a number of identified issues, including certain weaknesses with the implementation of ‘Know Your Customer’ requirements, as well as systems and process issues that impacted transaction monitoring and reporting in some specific areas,” the company says in papers attached to its profit result.

“NAB continues to keep AUSTRAC (and where applicable, relevant foreign regulators) informed of its progress in resolving these issues, and will continue to cooperate with, and respond to queries from, such regulators.

“As this work progresses, further issues may be identified and additional strengthening may be required.”

The Commonwealth Bank had to pay out $700 million, the largest civil penalty in Australian corporate history, over massive money laundering regulation breaches.

The NAB says it has since July 2016 been working on strengthening its anti-Money Laundering and Counter-Terrorist Financing programs.

“The work involves significant investment in systems, ensuring an effective and efficient control environment and uplifting compliance
capability,” the bank says.

“In addition to a general uplift in capability, the program of work aims to remediate specific compliance issues and weaknesses as they are identified.”