Westpac Australia sacks chief executive over laundering scandal

Westpac Australia sacks chief executive over laundering scandal

Mr Hartzer will step down on Monday and be replaced on an interim basis by chief financial officer Peter King, while Mr Maxsted is no longer seeking re-election at next month's AGM and will retire in "the first half of 2020". He would be resigning next month with a full salary of 2.7 million dollars (1.8 million US dollars) for 2020 but would be denied his 2019 bonuses.

AUSTRAC's statement of claim against Westpac details a litany of technology failures that went unaddressed for years, culminating in a whopping 23 million breaches of anti-money laundering (AML) regulations.

Shadow treasurer Jim Chalmers "welcomed" the decision. "While the review is ongoing, it has found no material issues to date", Corbally said.

Following shareholder queries, ANZ (ASX:ANZ) today provided an update on the actions it has taken to assist in the prevention of financial crime in the Australian banking system. It's a key part of the economy.

Aside from necking its chief executive and chairman yesterday, Westpac over the last few days revealed it is throwing another $25 million at its broken transaction monitoring systems to expedite fixes.

After days of turmoil which resulted in chief executive officer Brian Hartzer falling on his sword almost one week after the scandal broke, the bank now faces the risk of customers exiting.

Referring to two of the most notorious collapses in global financial history, he is said to have told executives the scandal was "not an Enron or Lehman Brothers".

"We all read the Fin (The Financial Review) and The Australian, and we all read that and think the world is ending", he said according to The Australian.

Historic Museum Heist in Germany
Founded in 1723 by Augustus the Strong, Prince-Elector of Saxony, it was destroyed in the Second World War but restored in 2006. A police officer in front of the Residenzschloss, or Residence Palace building, of the Green Vault in Dresden .

According to news outlet The Australian, Hartzer said to executives in a meeting: 'For people in mainstream Australia going about their daily lives, this is not a major issue so we don't need to overcook this'. We do not write articles to promote products.

"It is clear that we have fallen well short of what the community expects of us, and we expect of ourselves".

"Unfortunately in the heightened media environment it will not look good if we have our staff whooping it up with alcohol", he said.

Among other failings, the regulator alleged the bank - the nation's oldest - had failed to adequately monitor the accounts of a convicted child sex offender who had regularly sent money to the Philippines.

Most of the offences concerned late reporting of overseas transactions, but Austrac believes some of the transactions were also linked to "child exploitation risks". "This includes money laundering, terrorism, human trafficking, tax evasion and child exploitation", Corbally said.

Westpac shares closed down 0.2% on Wednesday, taking its total decline to 6.6% or A$6.2 billion ($4.2 billion) in market capitalisation since the money-laundering lawsuit was announced.

In closing Monday morning's briefing, Mr Hartzer said, "This is not an Enron or Lehman Brothers, we will get through this".

Related News:

Most liked

Trump Says He Didn’t ‘Direct’ Giuliani to Go to Ukraine
President Donald Trump's lawyer, as part of an active criminal investigation , according to a grand jury subpoena seen by Reuters. If Biden wins the Democratic nomination, the Trump campaign will hammer him over Hunter Biden's checkered history, Trump said.

Mobile Reports Data Breach Affecting More Than a Million Customers
Their internal cybersecurity team was able to shut down the hack and then they were able to report these to the authorities. A similar data breach had compromised the personal information of almost two million T-Mobile customers past year as well.

PS4 Black Friday deals: Know about the discounts on your favourite PlayStation
If you haven't yet become a Playstation Plus member, there is no better time to than now! You can get it right now for $42.74. This naturally includes PS4 and PSVR bundles, games, PS Plus memberships, and all sorts of other bits and bobs.

Fired Navy Secretary Richard Spencer slams Trump' intervention in Eddie Gallagher case
Trump intervened again, to order the trident pin and rank restored, saying he would not be expelled from the force. On Sunday , Trump directed Esper to allow Gallagher to retire as a SEAL, and Esper said he would do so.

Wada pushes for Russian Federation to be banned from Tokyo Olympics
The country's national team was barred from the 2018 Pyeongchang Winter Olympics in South Korea. WADA's executive committee is scheduled to meet on December 9 to discuss the matter.

Rafael Nadals big secret revealed by Spains Davis Cup winning captain
Canada was seeking its first Davis Cup trophy. "But once we qualified for the final, I started feeling like playing". It was however Roberto Bautista Agut's presence, and victory, that was awe-inspiring.

Pakistan Army Chief extension suspended by Supreme Court
To this, the attorney general replied that the government would ask the president to approve the notification again. Another petition challenging General Qamar Javed Bajwa's extension has been filed in the Islamabad High Court.

Kollywood actor Bala Singh passes away
It is said that for the last rites, Bala's body will be taken to his hometown Nagerkoil, later in the evening. Bala Singh has done over 100 films and apart from movies, has made his presence felt on television as well.

Rick Perry says Trump was chosen by God to lead US
Energy Secretary Rick Perry gave an interview to FOX & Friends, parts of which aired over the weekend, including this nugget. Two days later he tweeted that reporters "knew I was kidding (and) being sarcastic". "I know what I heard".

Baltimore Students Boo Melania Trump Before Remarks on Opioid Crisis
Earlier, the White House announced that President Donald Trump is donating his third-quarter salary to combat the opioid epidemic. In July, Trump labeled the city a "disgusting rat and rodent infested mess," saying no human would want to live there.

Charles Schwab to buy rival TD Ameritrade in $26B stock deal
Schwab and TD Ameritrade both offer "custodian" services, such as record keeping, to registered investment advisers (RIAs). Charles Schwab and TD Ameritrade combined would have assets of around US$5-trillion, according to Reuters calculations.

Model-actor Godfrey Gao passes away after on-set collapse
Gao was born in Taipei, in 1984, to a Taiwanese father and a Malaysian mother but grew up in North Vancouver. Godfrey appeared on the show as a guest and couldn't cope up with the physical demands of the show.

Malta PM's chief of staff quits amid journalist murder probe
On Tuesday, they called for Muscat's resignation and the prosecution of Schembri and Mizzi. Caruana Galizia's family said Tuesday that Schembri should be prosecuted "immediately".

California: thousands flee from fire burning near Santa Barbara
Additional resources have been ordered from out of the area, which have been arriving all evening. The Santa Barbara Public Library has N95 masks available if anyone is in need.

Twitter prepares for huge cull of inactive users
Users can squat on an account for years, holding onto handles in spite of long stretches of inactivity. As for the timeline of opening up those accounts, Twitter's not saying.