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Unravelling CBA's alleged breaches

CBA'S ALLEGED BREACHES UNTANGLED:

WHAT YOU NEED TO KNOW:

* CBA has been accused by AUSTRAC of 53,700 breaches of laws put in place to combat money laundering and terrorism financing

* Its shares closed 3.9 per cent lower on Friday, dragging its market value down $5.5 billion to around $139.6 billion, but recovered to be up 1.1 per cent to $81.60 at noon on Monday

* The allegations come after gaming giant Tabcorp paid $45 million to settle a money-laundering case with AUSTRAC in February

ACCUSATIONS:

* Failed to assess the money laundering and terrorism financing risk of intelligent deposit machines (IDMs) before rolling them out in 2012

* Only took its first steps to assess the risks in mid-2015

* Failed to provide on-time reports of more than 53,500 transactions through IDMs of $10,000 or more, totalling $625 million

* Failed to report suspicious matters involving $77 million worth of transactions, either on time or at all

* Failed to monitor its customers even after suspected money laundering had been brought to the lender's attention

PENALTIES:

* Faces a possible maximum penalty of $18 million for each contravention, if found guilty

HOW CBA SEES IT:

* It will file a statement of defence

* Blames late transaction reporting on a coding error following a software update to its IDMs in late 2012, which was fixed within a month of discovery in 2015

* In relation to approximately 53,000 on-time transaction reports, CBA argues it should be liable for a single contravention of the anti-money laundering and counter-terrorism laws

* Acknowledges it needed to be more vigilant in the area of financial crime and anti-money laundering

Austrlaian Associated PressBack to Breaking News

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