The NAB has placed a limit on cash deposits at its ATMs of $5000 to combat money laundering, CEO Andrew Thorburn told a federal parliamentary committee.
The regulatory limit is $10,000 deposit in cash before authorities are alerted to possible money laundering.
Thorburn says by Australia’s financial intelligence and regulatory agency, AUSTRAC, has no issues with the bank’s systems.
“I want to assure you that NAB takes anti-money laundering obligations extremely seriously,” he told the committee.
“Unfortunately, bad people will always try to commit crime. So, we must be vigilant and work with regulators, police, and Government to prevent and report crime.”
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.
Thorburn was answering questions at 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 parliamentary inquiry was formed following a series of scandals among the four major banks including alleged breaking anti-money laundering regulations, alleged manipulation of the bank bill swap rate, wrongly charging credit card fees, unjustly declining insurance claims and giving poor financial planning advice.
Nine of the committee’s recommendations were adopted in the May federal budget, including a one-stop-shop for consumer complaints, a regulated bank executive accountability regime, and new powers and resources for the consumer watchdog, the ACCC, to investigate competition issues in the setting of interest rates.
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