Why Bank of Queensland’s compliance systems are under fire


It comes a year after the bank extricated itself from the Storm Financial imbroglio by paying $17 million in compensation to customers as part of a settlement of legal action brought by ASIC.

A year on, the corporate regulator says in a letter to the bank, “ASIC’s concerns regarding the bank’s compliance systems (specifically in relation to the bank’s transaction monitoring responsibilities) are also separately held by AUSTRAC, as a result of its investigation into the bank’s money-market deposit account”.

It says AUSTRAC found the bank’s risk-based systems and controls in its transaction monitoring program were, and are, “inappropriate”. This is based on the fact that the anti-money laundering counter-terrorism finance risk-rating of customers accessing the money-market deposit account was higher than the risk that the bank’s systems and controls were designed to “mitigate” against