Independent investigation was launched after identifying suspicious behaviour at branch
Deloitte has identified anti-money laundering and counter-terrorism financing deficiencies at Bendigo and Adelaide Bank after the second-tier lender engaged the firm to conduct an independent investigation.
Having identified suspicious behaviour at one of its branches, Bengido filed a report with AUSTRAC and law enforcement earlier this year.
Deloitte’s review found deficiencies in the bank’s approach to identification, mitigation and management of money laundering and terrorism financial risk.
These deficiencies extended beyond the branch and into key aspects of Bendigo’s risk-management, due diligence, transaction-monitoring and customer risk rating procedures.
In a statement on the findings, Bendigo said: “The board is very disappointed with the findings and is fully committed to ensuring that the bank undertakes the necessary enhancements to its systems, processes and frameworks to ensure it is fully compliant with its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth).
“The board has committed to fully funding the uplift program to address all deficiencies identified in the Deloitte review.
“While the final outcomes (including costs) are unknown at this stage, the bank will keep the market informed in line with its continuous disclosure obligations.
The Bank will continue to engage constructively with AUSTRAC, APRA and ASIC in relation to this matter.”
