National Australia Bank Limited (NAB) has been informed by AUSTRAC it has identified serious concerns with NAB’s compliance with the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Act 2006 and the Anti-Money Laundering and Counter-Terrorism Financing Rules 2007.
AUSTRAC advised NAB in a letter dated 4 June, 2021, that it is AUSTRAC’s view that there is “potential serious and ongoing non-compliance” with customer identification procedures, ongoing customer due diligence and compliance with Part A of NAB’s AML/CTF Program.
These concerns have been referred to AUSTRAC’s enforcement team, which has initiated a formal enforcement investigation.
In the letter to NAB, AUSTRAC stated that it has not made any decision about whether or not enforcement action would be taken. AUSTRAC stated that, at this stage, it is not considering civil penalty proceedings and that this decision is “reflective of the work undertaken” by NAB to date.
AUSTRAC’s referral to its enforcement team follows regular engagement by NAB with AUSTRAC over a long period of time, both to report issues and keep AUSTRAC informed of progress in uplifting and strengthening the Group’s AML/CTF Program.
AUSTRAC has a wide range of enforcement options available to it, including civil penalty orders, enforceable undertakings, infringement notices and remedial directions.
NAB CEO Ross McEwan said NAB would continue to cooperate with AUSTRAC in its investigations.
“NAB takes its financial crime obligations seriously. We are very aware that we need to further improve our performance in relation to these matters. We have been working to improve and clearly have more to do,” Mr McEwan said.
