CBA in BIG trouble

The big news in past few days has been the revelation that the CBA failed, on an epic scale, to regulate it's accounts with regard to money laundering.

Why does this end up ?
CBA risks massive fines over anti-money laundering, terrorism financing law breaches
By senior business correspondent Peter Ryan
Updated Thu at 4:39pm

Photo: The maximum penalty for each of the alleged contraventions is $18 million. (AAP)
Related Story: Tabcorp fined $45 million for breaching counter-terrorism financing laws
Related Story: Tabcorp faces legal action over money laundering rules
Map: Australia
The Commonwealth Bank has been accused of "serious and systemic" breaches of anti-money laundering and terrorism financing laws that could leave it exposed to massive civil penalties.


How the Commonwealth Bank laid the groundwork for a royal commission
Analysis
By business editor Ian Verrender
Updated 10 minutes ago

Photo: The allegations against the Commonwealth Bank, if true, could have national security implications. (ABC News: Margaret Burin)
Related Story: Comm Bank CEO says 'mistakes were made', but he won't be standing down
Related Story: Xenophon calls for criminal penalties for 'reckless' banking bosses
Related Story: How three men got away with money laundering through CBA
Map: Australia
Where do you start?

A total clean-out of the board and management of the Commonwealth Bank, a complete rethink of the role of our financial institutions, or a subjective investigation on the impact of new technology and whether it can replace human involvement?

There is no way to understate the extent of the latest allegations against the Commonwealth Bank of Australia; ignoring money laundering for drug syndicates, turning a blind eye to terrorism financing and abjectly ignoring statutory reporting responsibilities for more than three years on three quarters of a million accounts.

This is a deeply disturbing failure on an epic scale, one with the capacity to undermine national security.

http://www.abc.net.au/news/2017-08-...d-the-groundwork-for-royal-commission/8779598

Nurev should quit NOW.

SirRumpole said:

Nurev should quit NOW.

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Sh it I hope they don't go under that's where my dole money goes every fortnight lol

Protected species, just a reshuffle of the closed shop CEOs and Directors.

Make no mistake the events are serious, but I think the consequence to CBA is not going to be that substantial.

I think the impact will be in the order of <$2B fine (<1.5% in market cap), and perhaps one-off costs of $2-300m to upgrade systems/training/ATM machine etc. If you want throw in extra $50m per year in additional costs... you still can't find more than 3% impact on the company in terms of market cap. Friday's fall was more than enough.

The announcement today by the CBA has already soften up... and it won't be long before CBA acknowledges its mistake and cops the fine.

I think SKC is on the money regarding probable financial outcomes. I'm wondering if

1) This situation creates an irresistible force for a Royal Commission. I can see the Senate getting antsy
2) The CEO, senior managemet and the Board have further individual sanctions.

Also one would think that the intelligent deposit system will no longer be the cash cow it once was. That could have an effect on overall profits.

and shareholders will wear the brunt of it,

Where is SKC probably more than correct, why not banks play the same game when customers get defaulted. They charge heavy default fine.
In this case, CBA was patronising (I do not take it on board that it was an innocent mistake) the law breakers to smuggle cash out of Australia. So they should be treated as other drug smugglers and money launderers. Just send the shameless CEO to jail for 15 days and be with other money launderers- this 'mistake' at the cost of tax payers, law makers, and share holders will never happen.
If SNC Lavalin and Siemens get fined heavily for their minor bribery, Rio officers get to jail for bribing in China - why do we treat CBA differently (is it of money donated to party funds??).
It is interesting if CBA share will then come down to $50.

crackajack said:

Sh it I hope they don't go under that's where my dole money goes every fortnight lol

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Crackajack - I think their money goes to pay bills at 181 Hay Street, Kalgoorlie, TAB and Madison Square with pleasure trip to Vegas