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Federal Treasurer, Scott Morrison has labelled the Commonwealth Bank’s alleged breach of Australian money laundering laws as an “epic fail”.
The Treasurer suggested it was now up to the bank to regain public trust, following what he described as “serious allegation”. Despite this, Morrison ruled out the possibility of the government pursuing a Royal Commission. Morrison said a Royal Commission would be unnecessary, given the government had already stepped in to ensure greater accountability of executives.
“Action now is what you want on banks, not kicking this down three years for a lawyers’ picnic for all that period of time and only to recommend things that we’re already doing,” he told ABC Radio.
“I think it’s an epic fail and incredibly serious, and at the end of the day the Commonwealth Bank — and particularly their board — have to assure the public about their confidence in that bank,” Morrison said.
CBA chair Catherine Livingstone announced the troubled financial institution has formed a board sub committee to investigate the bank’s response to AUSTRAC’s allegations of money laundering and terrorist financing.
The Australian Securities and Investments Commission (ASIC) has confirmed it will investigate CBA’s handling of suspicions its intelligent deposit machines were used by money launderers and criminal gangs.