19 February 2018
visit www.ebaday.com

CBA blames money laundering reporting failures on ATM coding error

07 August 2017  |  10176 views  |  1 CBA bank branch

Commonwealth Bank of Australia has blamed a three-year coding error in its intelligent deposit machines (IDM) for breaches of anti-money regulations.

The Bank is currently being sued by financial crime regulator Austrac for failing to report suspicious transactions totalling A$624 million.

In a statement, the bank says a software update to its IDM network in 2012 resulted in a coding error which meant that the machines failed to create Threshold Transaction Reports required under AML rules. The glitch went unnoticed and unresolved until its discovery in 2015.

"In an organisation as large as Commonwealth Bank, mistakes can be made," the bank says in a statement. "We know that because we are a big organisation, these mistakes can have significant impact."

CBA says the coding error was responsible for the "vast majority" of the 53,000 violations detailed by Austrac, but adds "we recognise that there are other serious allegations in the claim unrelated to the TTRs".

Austrac's actions have once again drawn attention to the power of the Big Four banks in Australia and their apparent willingness to play fast and loose with the rule-book, leading the political class to call for a far-reaching inquiry and the head of CBA chief Ian Narev.

Comments: (1)

Hitesh Thakkar
Hitesh Thakkar - FIS Payments Software and Services India - India | 09 August, 2017, 12:28

Australia is not alone, it happens in India also. Few large banks ( can not name in public) in India goes loud for it's sheer size issue and ask to get away with regulatory compliance and reporting.

Defaulter list with big names is published recently by regulator is classic example about risk exposures not reported correctly by these banks resulting in NPA.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CommBank launches Youthapp to teach kids the value of money

CommBank launches Youthapp to teach kids the value of money

19 June 2017  |  6065 views  |  0 comments | 11 tweets | 11 linkedin
CommBank hails Albert POS terminal

CommBank hails Albert POS terminal

03 April 2017  |  7401 views  |  0 comments | 10 tweets | 13 linkedin
Australian banks lose bitter battle with Apple Pay

Australian banks lose bitter battle with Apple Pay

31 March 2017  |  12161 views  |  0 comments | 31 tweets | 37 linkedin
Former CommBank IT exec faces US fraud charges

Former CommBank IT exec faces US fraud charges

30 September 2016  |  5746 views  |  0 comments | 2 tweets | 1 linkedin
Australian banks face A$13 billion revenue loss to fintech sector - F&S

Australian banks face A$13 billion revenue loss to fintech sector - F&S

07 April 2016  |  11285 views  |  0 comments | 17 tweets | 31 linkedin
Oz watchdog clears banks of collusion in bitcoin lockdown

Oz watchdog clears banks of collusion in bitcoin lockdown

15 February 2016  |  5443 views  |  0 comments | 2 tweets | 1 linkedin
Australian fintech community pushes for reform

Australian fintech community pushes for reform

12 November 2015  |  6278 views  |  0 comments | 13 tweets | 4 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.vasco.comvisit www.nextgenbanking.co.ukvisit www.ebaday.com

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
11463 views comments | 16 tweets | 12 linkedin
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
9026 views comments | 15 tweets | 13 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
8887 views 10 comments | 22 tweets | 26 linkedin
Aussie real-time payments platform goes liveAussie real-time payments platform goes li...
8795 views comments | 15 tweets | 43 linkedin
Coinbase and Visa at loggerheads over erroneous charges on customer crypto accountsCoinbase and Visa at loggerheads over erro...
7396 views comments | 12 tweets | 10 linkedin

Featured job

Competitive base + commission + benefits
UK or Germany

Find your next job