04/09/2017 - 11:49

CBA to defend allegations in court next year

04/09/2017 - 11:49


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AUSTRAC’s civil penalty proceedings against Commonwealth Bank of Australia won’t appear in the Federal Court until April next year.

Austrac’s civil penalty proceedings against Commonwealth Bank of Australia won’t appear in the Federal Court until April next year.

In a statement today, the bank said it has been ordered by the court to file its defence to the proceedings by mid-December, with Austrac to file its response by March next year.

The proceedings were launched by Austrac following allegations that the bank had breached laws against money laundering and terrorism funding.

The matter has been listed for a further directions hearing which has been scheduled for early April.

“CBA’s response to Austrac’s civil proceedings, as well as the ongoing program of action to strengthen the group’s anti-money laundering frameworks, will continue to be overseen by a committee of the board of the bank,” CBA said.

CBA is also set to face an inquiry by the Australian Prudential Regulation Authority over the same matter.

A shareholder class action also is on the cards.

Meanwhile, bank announced today the appointment of NSW Treasury Corporation director Robert Whitfield.

Chairman Catherine Livingstone said Mr Whitfield, who has taken on the role as an independent non-executive director effective immediately, brings with him extensive risk management experience.

"Rob's broad risk management and public sector experience, as well as his extensive banking experience, will deepen the board's existing skills and expertise," Ms Livingstone said in a statement.

The director of NSW Treasury Corporation was previously secretary of NSW Treasury and of NSW Industrial Relations.

Before NSW Treasury, Mr Whitfield held senior roles during a 30-year career at Westpac.

Two directors will retire from CBA's board at the bank's annual general meeting on November 16.

Launa Inman, who has been on the board for 10 years and served on its audit and remuneration committees, and Harrison Young, who has been a board director for six years and was a member of the risk, audit and nominations committees will step down.

Andrew Mohl has been asked to stand for re-election and serve one more year due to his extensive insurance experience.

This follows the mid-August announcement that CBA chief executive Ian Narev will retire this financial year.


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