MELBOURNE – One of Australia’s biggest financial institutions stated on Monday it has agreed to pay a record penalty of 240 million Australian dollars ($160 million) due to corporate misconduct impacting nearly 65,000 customers as well as the federal government.
Melbourne-based ANZ, also known as Australia and New Zealand Banking Group, alongside the Australian Securities and Investments Commission, announced in statements that they will seek federal court approval for the penalties concerning four separate legal actions.
The fines would establish a new precedent for the largest single penalty for corporate misconduct imposed by ASIC, the national regulatory authority for companies and financial services. The former record was AU$113 million ($75 million) levied on Sydney-based Westpac for extensive compliance lapses in 2022.
“The penalties we will ask the court to impose, including a record penalty ASIC has pursued for unconscionable conduct, underline both the gravity and the quantity of legal violations, as well as how ANZ placed its customers in vulnerable positions and repeatedly failed to address critical issues,” stated Joe Longo, ASIC chair.
ANZ admitted to neglecting to refund fees to thousands of deceased customers and failing to respond to hundreds of notifications regarding customer hardships, sometimes neglecting them for over two years, according to the regulator.
Additionally, the bank issued false and deceptive statements regarding savings interest rates and did not deliver the promised interest rates to tens of thousands of customers. ANZ was also said to have acted unconscionably with the Australian government in managing AU$14 billion ($9.3 billion) in bonds over two years, ASIC reported.
ANZ chief executive Nuno Matos, who joined the bank in May, said he expected to see “measurable improvements” resulting in better care for customers.
“The failings outlined are simply not good enough and they reinforce the case for change,” Matos said.
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