Australia’s ANZ, one of the country’s “big four” banks, has agreed to pay a record fine of $240 million Australian dollars ($159.5 million) over “widespread misconduct”, the financial regulator said Monday.
The fine is the largest ever announced by the regulator against a single entity, the Australian Securities and Investments Commission (ASIC) said.
ANZ was fined for “acting unconscionably” while managing a $14-billion bond deal with the Australian government.
It was also penalized for “failing to respond to hundreds of customer hardship notices”, making false or misleading statements about its savings interest rates and failing to refund fees charged to dead customers.
“Time and time again ANZ betrayed the trust of Australians,” Joe Longo, chair of the ASIC, said.
“Banks must have the trust of customers and government. This outcome shows an unacceptable disregard for that trust that is critical to the banking system.”
ASIC deputy chair Sarah Court said: “As one of Australia’s biggest banks, customers trusted ANZ to do the right thing but, even on the basics like paying the correct interest rate, it fell short.”
Embattled ANZ, one of four banks that dominate Australia’s financial services industry, announced last week it would cut over 3,500 staff by September next year, part of a restructuring plan it said would cost over $500 million Australian dollars.
ANZ chairman Paul O’Sullivan confirmed that the bank had agreed to the fines, saying “the reality is we made mistakes that have had a significant impact on customers”.
“On behalf of ANZ, I apologize and assure our customers we have taken the necessary action, including holding relevant executives accountable,” he said in a statement.
CEO Nuno Matos added: “The failings outlined are simply not good enough and they reinforce the case for change”.