June 3, 2020 / 10:34 PM / a month ago

BRIEF-Westpac Releases Findings Into AUSTRAC Statement Of Claim Issues

June 4 (Reuters) - Westpac Banking Corp:

* RELEASES FINDINGS INTO AUSTRAC STATEMENT OF CLAIM ISSUES

* FAILURE CONCERNING INTERNATIONAL FUNDS TRANSFER INSTRUCTIONS NON-REPORTING OCCURRED DUE TO MIX OF TECHNOLOGY & HUMAN ERROR

* REPORT NOTES DIRECTORS COULD HAVE RECOGNISED EARLIER SYSTEMIC NATURE OF SOME OF FINANCIAL CRIME ISSUES WESTPAC WAS FACING

* THERE WERE UNCLEAR END-TO-END ACCOUNTABILITIES FOR MANAGING AML/CTF COMPLIANCE

* WILL CONTINUE TO ENGAGE WITH AUSTRAC ON LEGAL PROCESS, FOLLOWING SUBMISSION OF ITS DEFENCE & ADMISSIONS ON 15 MAY 2020

* SOME AREAS OF AML/CTF RISK WERE NOT SUFFICIENTLY UNDERSTOOD WITHIN WESTPAC

* PANEL ALSO NOTED THAT REPORTING TO BOARD ON FINANCIAL CRIME MATTERS WAS AT TIMES UNINTENTIONALLY INCOMPLETE & INACCURATE

* WESTPAC’S INVESTIGATIONS HAD NOW CONCLUDED

* ESTABLISHED NEW BOARD LEGAL, REGULATORY & COMPLIANCE SUB-COMMITTEE

* “WE COMPLETELY ACCEPT THAT SOME IMPORTANT ASPECTS OF WESTPAC’S FINANCIAL CRIME RISK CULTURE WERE IMMATURE AND REACTIVE”

* IDENTIFIED THREE PRIMARY CAUSES OF AML/CTF COMPLIANCE FAILURES

* SOME AREAS OF AML/CTF RISK NOT SUFFICIENTLY UNDERSTOOD WITHIN WESTPAC

* THERE WAS A LACK OF SUFFICIENT AML/CTF EXPERTISE AND RESOURCING

* “WHILE COMPLIANCE FAILURES WERE SERIOUS, PROBLEMS WERE FAULTS OF OMISSION. THERE WAS NO EVIDENCE OF INTENTIONAL WRONGDOING”

* RANGE OF REMUNERATION CONSEQUENCES WERE APPLIED TO 38 INDIVIDUALS Source text for Eikon: Further company coverage: (Reuters.Briefs@thomsonreuters.com)

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