SYDNEY, AAP – Financial regulator APRA has closed its investigation into Westpac’s breaches of anti-money laundering and terror financing laws, but says it will make sure the bank improves its operations.
The Australian Prudential Regulation Authority on Friday said it made the decision after considering the results of an ASIC investigation into whether the bank’s same conduct breached the Corporations Act.
Westpac last year agreed to pay a $1.3 billion fine, having admitted to breaking international fund transfer laws 23 million times.
Some suspicious transactions that slipped under the radar were linked to child abuse.
The bank has agreed to measures to improve its risk management. These include a $1 billion operational risk capital add-on, a risk governance remediation plan and independent review of its operations.
APRA deputy chair John Lonsdale said the regulator would be holding Westpac to account to deliver the improvements.
Shares in the bank were lower by 0.2 per cent to $24.48 at 1139 AEDT.