The Australian Prudential Regulation Authority (APRA) has completed an investigation into Westpac Banking Corporation for possible violations of Australia’s Banking Act 1959 and the Banking Executive Accountability Regime (BEAR). APRA’s investigation began in December 2019 due to AUSTRAC’s allegations that Westpac had violated AML/CFT laws.
APRA’s investigation assessed Westpac’s actions to address the issues that AUSTRAC had identified. However, the APRA investigation did not reveal any evidence of violation of the Banking Act or the BEAR. After further taking into account the results of an investigation by Australian Securities and Investments Commission (ASIC), APRA decided to close its investigation.
However, the APRA still requires Westpac to strengthen its risk governance weaknesses. Therefore, Westpac must implement an integrated risk governance remediation plan. Westpac’s $1 billion operational risk capital add-on will also remain unchanged until the bank completes its remediation satisfactorily.
Source: The Australian Prudential Regulation Authority (APRA)