ANZ’s $240 MILLION Betrayal: Bank’s ‘Widespread Misconduct’ Impacts 65,000 Customers as Regulator Slams ‘Unconscionable Conduct’
- ANZ agrees to pay record $240 million penalty for ‘widespread misconduct’ spanning multiple years
- Nearly 65,000 customers impacted by bank’s failures, including incorrect bond trading data and ignored hardship notices
- Regulator ASIC slams ANZ’s ‘unconscionable conduct’ and ‘serious inadequacies’ across multiple levels and divisions
- ANZ Chairman Paul O’Sullivan apologises, admitting the bank has ‘fallen short’ of customer trust
ANZ has admitted to engaging in ‘widespread misconduct’ that has impacted nearly 65,000 customers, sparking a record $240 million penalty. The bank’s failures include incorrectly reporting bond trading data to the government, ignoring hundreds of customer hardship notices, and failing to refund fees charged to thousands of dead customers.
ASIC Chairman Joe Longo slammed ANZ’s actions, saying the bank had ‘betrayed the trust of Australians’ time and time again. ‘The total penalties of $240 million reflect the seriousness and number of breaches of the law,’ he said.
The misconduct occurred over ‘many years’, spanning across ANZ’s institutional and retail divisions. A combined $125 million in penalties relates to ANZ ‘acting unconscionably’ while managing a $14 billion government bond deal, and incorrectly reporting its bond trading data to the federal government.
In a further blow to the bank’s reputation, ASIC Deputy Chairman Sarah Court said the issues reflected ‘serious inadequacies’ across multiple levels and divisions of ANZ. ‘As one of Australia’s biggest banks, customers trusted ANZ to do the right thing, but even on the basics like paying the correct interest rate, it fell short,’ she said.
ANZ Chairman Paul O’Sullivan apologised on behalf of the bank, admitting that ANZ had ‘fallen short’ of customer trust. ‘We have taken the necessary action, including holding relevant executives accountable,’ he said.
The penalties will be subject to consideration and approval by the Federal Court. If imposed, it will send a clear message to ANZ and all other banks that the cost of breaking the law is not an acceptable cost of doing business.