To senior people at Westpac the AUSTRAC charges seemed like a minor technical glitch. Instead they’d been handed a grenade which exploded in their faces. The media portrayal has been of greedy bankers who would engage in anything to make a profit. This SMH editorial begins:
- After the royal commission into the financial sector last year, many pundits said that trust in banks could not go any lower. Westpac has proven them wrong.
Less than a year after Kenneth Hayne delivered his report about rip-offs and illegal sales tactics by Australia’s most profitable financial institutions, Australia’s second largest bank has been pinged for breaches of money laundering and anti-terrorism laws, including facilitating payments to paedophiles in the Philippines.
The actual is a little more prosaic, as the editorial goes on to tell:
- Westpac’s latest failures raise different issues to the Hayne inquiry. This is not a case of bank managers ordering their staff to act unconscionably or flawed incentive payments. Westpac’s crimes here are arguably more those of omission than commission. It failed to implement and check the IT systems required to properly detect and report suspicious transactions. (Emphasis added)