ANZ Pays Record $160M Fine for Widespread Misconduct in Australia

Australia's ANZ Bank has been fined a record A$240 million (US$160 million) by the Australian Securities and Investments Commission (ASIC) for widespread misconduct, including misleading the government during a US$14 billion bond deal, overstating bond trading data, and failing to respond adequately to customer hardship notices. The bank also made false and misleading statements about savings interest rates, failed to pay promised interest to tens of thousands of customers, and neglected to refund fees charged to deceased customers. This fine is the largest ever announced by ASIC against a single entity and caps a series of penalties ANZ has faced since 2017 for various breaches, totaling over A$315 million. ASIC officials emphasized that ANZ repeatedly betrayed the trust of its customers and the government, highlighting the critical need for trust in the banking system. In response, ANZ has initiated accountability reviews, held executives responsible through reduced remuneration, and committed to a remediation plan, including spending approximately A$150 million to address root causes and improve compliance. The bank is also undergoing restructuring, including significant staff cuts, as it seeks to restore trust and strengthen safeguards amid increased regulatory scrutiny.