Commonwealth Bank to Pay Record Fine to Settle Laundering Suit

  • Bank to pay A$700 million to settle more than 53,000 breaches
  • Drug syndicates used bank’s deposit machines to launder money
CBA has agreed to pay the biggest civil penalty in Australian corporate history, Bloomberg’s Ed Johnson reports.(Source: Bloomberg)
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Commonwealth Bank of Australia has agreed to pay the biggest civil penalty in Australian corporate history, after admitting to more than 53,000 money-laundering law breaches that allowed drug syndicates to funnel millions of dollars offshore.

The nation’s largest lender will pay A$700 million ($530 million) to bring to an end the 10-month saga, which led to the departure of former Chief Executive Officer Ian Narev and gave impetus to a wide-ranging inquiry that’s uncovered further wrongdoing by Australia’s banks and wealth managers.