Ian Narev's Reign At Commonwealth Bank: From Scandals To Blockbuster Profits

This is source I found from another site, main source you can find in last paragraph

"People want to hold their leaders accountable," he said. "I work for the shareholders and the message they give me when I meet them in airport lounges or out and about is that the success of the bank is really important to them and don't muck it up."

Success for a company, as outlined by Justice James Edelman when considering directors' duties in the case ASIC v Cassimatis, depends not just on its financial performance but also reputation.

CBA's reputation and share price took a hit when on August 3 AUSTRAC lodged its statement of claim with the federal court where it alleged there were at least 53,506 violations by CBA of the Anti-Money Laundering and Counter-Terrorism Financing Act.

Most of those concerned late reporting of large transactions through the bank's "intelligent deposit machines" (IDMs) by people who it considered were organised crime syndicates involved with drugs or possibly terrorism funding.

A former bank executive, who requested anonymity, said taking deposits was a very attractive business and a massive strength of the CBA. In the past decade, the biggest changes that banks have endured have been technology, regulation and increased capital requirements.

"CBA would want to preserve and increase the advantage over their competitors in deposit taking," the former bank executive said. "This would be seen as a key area particularly with changes in prudential regulation favouring retail deposits in balance sheet funding."

CBA has blamed a coding error for the problems with its "intelligent deposit machines" not reporting suspicious transactions.

On August 9, CBA posted a record full-year profit of $9.9 billion. At the release of those results, CBA chair Catherine Livingstone in a statement indicated the board had been aware of the money laundering allegations since the second half of 2015 but this was not disclosed to the sharemarket. Nor was a "program of action" the bank put in place to strengthen compliance policies and processes across the group. The program remains ongoing and included the hiring of more than 50 professionals that specialise in financial crime compliance.

This is source I found from another site, main source you can find in last paragraph

Source : http://www.afr.com/business/banking-and-finance/called-to-account-ian-narevs-reign-at-cba-from-scandals-to-blockbuster-profits-20170810-gxtn85



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