Australia’s ANZ Bank has agreed to a record $240 million fine imposed by the country’s financial services watchdog, the Australian Securities and Investments Commission (ASIC), over years of “unconscionable conduct.”
The penalties, to be imposed by the federal court, relate to four separate proceedings. These include acting improperly while managing a $14 billion government bond deal, and incorrectly reporting bond trading volumes—overstating figures by tens of billions of dollars over nearly two years.
ANZ was also accused of failing to respond to hundreds of customer hardship notices, sometimes for more than two years, and lacking proper hardship processes. Additional allegations involved making false statements about savings interest rates, failing to pay promised rates to tens of thousands of customers, and not refunding fees charged to deceased customers or responding promptly to their families.
ASIC Chair Joe Longo said ANZ repeatedly betrayed public and customer trust, placing Australians in vulnerable positions. He emphasized the seriousness of the breaches, noting that the bond trading misconduct could have reduced government funding for critical services such as health and education.
ANZ has pledged to implement a $150 million “root cause remediation program” to address the weaknesses behind the failures. ANZ Chair Paul O’Sullivan acknowledged the mistakes, apologized to customers, and confirmed accountability measures for relevant executives.
ASIC clarified that ANZ was not accused of market manipulation in connection with the government bonds. The court will decide whether the proposed penalties are appropriate.
