A major Australian bank will be cough up $240 million in fines after engaging in “widespread misconduct” affecting almost 65,000 customers.
ANZ admits failing to respond to hundreds of notices about customer hardship, making false and misleading statements about its savings interest rates and failing to pay that amount to customers.
The financial services watchdog also said the Big Four bank acted “unconscionably” while managing a $14 billion bond deal in services with the federal government as it incorrectly reported bond trading data and overstated volumes by tens of billions of dollars for years.
Even the dead were not spared, with ANZ failing to refund fees to thousands of dead customers and not responded to deceased estates inquiries from loved ones within the required time frame.
“Time and time again ANZ betrayed the trust of Australians,” ASIC Chair Joe Longo said.
“Banks must have the trust of customers and government.
“This outcome shows an unacceptable disregard for that trust that is critical to the banking system.”
The penalties are the largest announced by ASIC against one entity, according to Mr Longo.
ANZ has admitted to the allegations and its chief executive officer Nuno Matos says he is committed to change.
“The failings outlined are simply not good enough and they reinforce the case for change,” he said.
Each matter will be separately considered and determined by the Federal Court.
The penalties will put more pressure on the bank’s CEO, who came under fire on Tuesday after announcing ANZ would lay off 3500 staff and 1000 contractors by September 2026.