Powered by MOMENTUM MEDIA

APRA launches Westpac investigation

By Lachlan Maddock
 — 1 minute read

BREAKING APRA has formally commenced an investigation into Westpac and imposed an increase in the bank's capital requirements.

The investigation will examine whether Westpac, its directors and/or its senior managers breached the Banking Act - including the Banking Executive Accountability Regime (BEAR) - or contravened APRA's prudential standards.

"AUSTRAC's statement of claim in relation to Westpac contains serious allegations that question the prudential standing of Australia's second largest bank," said APRA Deputy Chair Mr John Lonsdale.

"While Westpac is financially sound, there are potentially substantial gaps in risk governance that need to be closed."

APRA will also impose an immediate increase in Westpac's capital requirements of $500 million to reflect the heightened operational risk profile of the bank. That brings the total operational risk capital add-ons that Westpac is required to hold to $1 billion.

"Given the nature of the matters raised by AUSTRAC, the number of alleged breaches and the period of time over which they occurred, this will necessarily be an extensive and potentially lengthy investigation." 

Advertisement
Advertisement

The must-attend event for financial advisers is back in 2022: the ESG Summit, coming to Sydney and Melbourne in February. Walk away with vital knowledge on a number of key ESG areas to help you make informed ESG strategy decisions and to better communicate and integrate the growing ESG space to clients. Visit the website to secure your place.

 

APRA launches Westpac investigation
investordaily image
ID logo

 

related articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.