CANBERRA, Nov. 24 (Xinhua) -- Australia's Treasurer has flagged the prospect of disqualifying Westpac Banking Corporation executives from serving on boards over allegations of misconduct.
The Australian Transaction Reports and Analysis Center (AUSTRAC), the anti-money-laundering and counter-terrorism financing regulator, on Wednesday launched legal action against Westpac over 23 million alleged breaches of the law.
In court documents the regulator accused Westpac, Australia's second biggest bank, of "systematic failures" and senior management of "indifference" and "inadequate oversight."
Responding to the allegations on Australian Broadcasting Corporation (ABC) television on Sunday, Treasurer Josh Frydenberg said they were "very serious issues both in terms of the nature and number of alleged breaches."
"We're talking about 23 million alleged breaches of the anti-money laundering laws," he said.
"We're talking about a failure to adequately assess customers with links to child trafficking and child pornography.
"And we've seen from AUSTRAC a statement that there has been indifference by the board; that there's been a systemic failure by the bank and there's been inadequate oversight."
The government in 2018 gave the Australian Prudential Regulation Authority (APRA) the power to disqualify executives from serving on boards if they have previously failed to abide by the law.
"I know that APRA is looking at it," Frydenberg said when asked if Westpac executives could be disqualified.
