Westpac pays record US$920mil to settle laundering suit

Largest fine: Westpac’s settlement ‘sends a strong message’ that Austrac will take action to ensure the financial system remains strong so it can’t be exploited by criminals. — AFP

SYDNEY: Westpac Banking Corp will pay a record A$1.3bil (US$920mil) fine to settle Australia’s biggest breach of anti-money laundering laws, capping a saga that shredded the bank’s reputation and cost former chief executive officer Brian Hartzer his job.

The fine, the largest levied against an Australian company, is more than the A$900mil Westpac had set aside for a potential penalty, and almost double the A$700mil that rival Commonwealth Bank of Australia paid to settle its own money-laundering breaches in 2018.