Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
Westpac files proceedings against Forum Finance over alleged fraud
Lawsuit filed
Westpac commenced proceedings in the Federal Court of Australia against Forum Finance after discovering a significant potential fraud. According to Westpac, the alleged fraud related to equipment leases arranged by Forum Finance and referred to Westpac's Institutional Bank. The proceedings followed the discovery of the potential fraud, and the bank described the matter as involving equipment leases arranged by Forum Finance and referred to its Institutional Bank.
Company response
Investigation — Westpac
an external review has been set up to investigate what went wrong
Source excerpt
13:12 PM, 2 Jul 2021
Westpac has announced that it has commenced proceedings in the Federal Court of Australia against Forum Finance Pty Ltd following the discovery of a significant potential fraud.
The big four bank has commenced proceedings in the Federal Court against Forum Finance Pty Ltd for an alleged $200-million fraud relating to equipment leases.
2021
Westpac subsidiaries to pay A$10.5 million over superannuation campaign
Fine or penalty
Westpac subsidiaries Westpac Securities and BT Funds Management will pay a total of $10.5 million for breaches related to a campaign that encouraged savers to transfer their superannuation and was found to have failed to act in customers’ best interests.
Source excerpt
Westpac has been fined just $10.5 million for failing to act in customers’ best interests when it instigated a campaign to get savers to hand over their superannuation, which inflated the company’s funds under management by $650 million.
the company’s subsidiaries Westpac Securities and BT Funds Management will pay $7.5 million and $3 million, respectively, for the breaches.
2021
Federal Court orders Westpac subsidiaries to pay a $10.5 million penalty
Fine or penalty
The Federal Court of Australia ordered Westpac Securities Administration Limited and BT Funds Management Limited to pay a combined $10.5 million civil penalty after finding that they provided financial product advice to 14 customers without complying with applicable legal duties.
Source excerpt
Both subsidiaries breached their "best interests duty" when they conducted a sales campaign that was aimed at rolling customers from their existing superannuation accounts into Westpac superannuation products.
Two Westpac Bank subsidiaries have been ordered to pay a $10.5 million fine by the Federal Court after they were found to have given customers financial advice when they were not licensed to do so.
2020
AUSTRAC considers additional allegations against Westpac
Investigation
In a controversy noted in 2020, Westpac said that AUSTRAC, Australia's financial crime watchdog, had notified the lender that it may include additional allegations in its case against the bank. According to Westpac, the notification followed further examination of matters that included suspicious transactions involving 272 customers. The statement concerned the possibility of additional allegations in the existing case; no further details on the allegations, their outcome, or any amounts were provided in the source account.
Westpac said AUSTRAC notified it that the financial crime watchdog may include additional allegations in its case against the lender, following further examination of matters including suspicious transactions involving 272 customers.
Source excerpt
Westpac said in a statement that AUSTRAC was further looking into matters including suspicious transactions for 272 customers that it had previously self-reported and may include allegations arising from these investigations.
Australia's Westpac Banking Corp said today it was notified by the financial crime watchdog that it may include additional allegations of wrongdoing in its case against the lender for breaching anti-money laundering laws.
2020
ASIC investigates Westpac leaders over share sale
Investigation
Australia’s corporate regulator is investigating current and former Westpac senior leaders over their approval of a $2.5 billion share sale to investors shortly before a separate regulator filed a lawsuit against the bank.
Source excerpt
Westpac's current and former senior leaders are under investigation by the corporate regulator for approving a $2.5 billion sale of the bank's shares to investors just two weeks before the anti-money laundering and terrorism financing regulator officially launched a lawsuit against the bank.
2019
AUSTRAC anti-money-laundering and child-exploitation-risk case
AUSTRAC alleged failures in transaction reporting, customer due diligence and risk controls, including risks involving international transfers, child exploitation and terrorism financing. Westpac accepted a record A$1.3 billion civil penalty in 2020.
2019
Federal Court fined Westpac $9.15 million over adviser misconduct
Fine or penalty
The Federal Court fined Westpac $9.15 million after finding that the bank failed to ensure its financial adviser acted efficiently, honestly and fairly. The court found the former employee contravened the Corporations Act 22 times.
Source excerpt
Justice Wigney ruled Westpac was responsible because it failed to make sure Mr Sinha acted efficiently, honestly and fairly.
The Federal Court found Mr Sinha contravened the Corporations Act 22 times.
Westpac has been fined $9.15 million by the Federal Court after one of its financial advisers gave inappropriate advice to clients.
2019
Westpac outlines response to AUSTRAC claims
Company response
Westpac used its annual general meeting to outline its response to the AUSTRAC money-laundering scandal, including closing products, reporting outstanding historical files, recruiting 200 compliance and financial-crime staff, adding transaction monitoring, and establishing a Board Financial Crime Committee. The source describes claims and the bank’s response; it does not report a determination in this passage.
Company response
Personnel action — Westpac
we are recruiting an additional 200 people in compliance and financial crime areas
Remediation — Westpac
On immediate fixes, he said the bank had closed products and reported outstanding historical files that were related to AUSTRAC IFTI claims.
Remediation — Westpac
We have also implemented additional transaction monitoring.
Source excerpt
To lift our standards… we are recruiting an additional 200 people in compliance and financial crime areas, adding to the 750 experts already working in this area,” he said.
King said the bank had established a Board Financial Crime Committee and sought to step up industry data sharing which he said was critical to fighting financial crime.
We have also implemented additional transaction monitoring.
2019
AUSTRAC sues Westpac over alleged compliance breaches
Lawsuit filed
Australia’s financial intelligence unit sued Westpac, accusing the bank of 23 million breaches of anti-money-laundering and terrorist-financing laws and of indifference toward the use of its services by pedophiles. The allegations are not presented as a court determination.
Company response
Personnel action — Westpac
promising to either cut or cancel short-term bonuses for executives and close the system through which many of the payments were made.
Remediation — Westpac
Westpac said it will tackle the problem by improving its data sharing across the industry and adding 200 people to the 750 who currently work internally on financial crime.
Source excerpt
In a statement today (Nov. 24), Westpac’s chairman Lindsay Maxted said the bank (pdf) felt “deep sorrow,” promising to either cut or cancel short-term bonuses for executives and close the system through which many of the payments were made.
Westpac said it will tackle the problem by improving its data sharing across the industry and adding 200 people to the 750 who currently work internally on financial crime.
Australia’s second biggest bank is reeling after a lawsuit by the country’s financial intelligence unit accused it of 23 million breaches of an anti-money-laundering and terrorist-financing law and “indifference” toward pedophiles using its services.
2019
Westpac orders independent review and apologizes over money-laundering breaches
Company response
Westpac chairman Lindsay Maxsted stood by CEO Brian Hartzer, ordered an independent review of the bank's money-laundering breaches, and said the board unreservedly apologized for material identified by the regulator.
Stated objective. Work with community groups to fight child exploitation.
Company response
Investigation — Westpac
ordering an independent review of the bank's money-laundering breaches
Apology — Westpac
Westpac board "unreservedly apologises" for the horrifying material identified by the regulator on Wednesday.
Source excerpt
Mr Maxsted spent most of Friday locked in an emergency meeting and emerged to declare the Westpac board "unreservedly apologises" for the horrifying material identified by the regulator on Wednesday.
Westpac chairman Lindsay Maxsted has stood by chief executive Brian Hartzer, ordering an independent review of the bank's money-laundering breaches, and pledging to work with community groups to fight child exploitation.
2019
AUSTRAC alleges Westpac anti-money-laundering violations and seeks penalties
Lawsuit filed
AUSTRAC alleged in a court filing that Westpac's regulatory failures led to serious systemic breaches of anti-money-laundering laws and proposed penalties of up to A$21 million for each transaction that was inadequately monitored or not reported on time. The supplied text reports allegations and proposed penalties, not a final determination.
Source excerpt
金融犯罪监管机构AUSTRAC在一份法庭文件中称，对西太平洋银行的监管失察导致“严重的系统性违反”反洗钱法。
AUSTRAC拟对该行每笔未能充分监控或及时申报的交易开出金额最多2，100万澳元（1，400万美元）的罚单。
2016
Benchmark-interest-rate manipulation allegations
ASIC alleged that Westpac traded bank bills to influence benchmark prices and benefit its own positions. The Federal Court later imposed a A$3.3 million penalty.
2008
Emergency Federal Reserve borrowing scrutiny
A Westpac-related entity borrowed approximately US$1.09 billion from the US Federal Reserve during the global financial crisis. The borrowing became public through later Federal Reserve disclosures and generated political and public scrutiny.
Environmental financing criticism
Environmental groups criticized Westpac's financing of coal-mining activity in New Zealand and alleged support for logging operations in Solomon Islands rainforests.