Australia’s banking regulator requires Westpac Banking Corp to hold an extra A$500 million in capital after announced an investigation into the bank’s alleged money laundering breaches.
The Australian Prudential Regulation Authority (APRA) said that Westpac Banking Corp would now need the extra capital to «reflect the heightened operational risk profile of the bank». The second-largest bank in Australia is embroiled in accusations of breaching anti-money laundering laws.
In June, Westpac was ordered by APRA to hold an extra A$500 million ($339 million) following a self-assessment program that found the bank needed to toughen its oversight of «non-financial risk».
AUSTRAC Investigations
Last month, AUSTRAC, the financial crimes agency, accused Westpac Banking Corp of breaching anti-money laundering laws up to 23 million times between 2013 and 2019. The investigation could take up to two years, «Reuters» reported, quoting people familiar with the matter.
In response to APRA's announcement, Westpac Group’s Chairman Lindsay Maxsted said the bank «accepts the gravity of the issues» presented by AUSTRAC. «As previously stated, these shortcomings are unacceptable and we are determined to urgently fix these issues and lift our standards,» Maxsted said in a statement.
