ANZ bank will pay $240 million in penalties, the largest fine ever issued by the Australian Securities and Investments Commission (Asic), to settle four investigations into widespread misconduct. The bank admitted to unconscionable conduct in raising money for the federal government, failing to respond to hundreds of customer hardship notices, making misleading statements about savings interest rates, and failing to refund fees charged to thousands of deceased customers.
Asic chair Joe Longo said on Monday that 'time and time again ANZ betrayed the trust of Australians', with the misconduct affecting nearly 65,000 customers. He added that there are 'fundamental issues with ANZ's risk and compliance culture that require the board's and executives' urgent attention'.
The penalties, subject to federal court approval, include $125 million for institutional and markets matters (including a record $80 million for unconscionable conduct) and $115 million for three retail matters. ANZ acted unconscionably while managing a $14 billion bond deal for the government, incorrectly reporting bond trading data and overstating volumes by tens of billions of dollars for nearly two years.
ANZ also failed to respond to 488 financial hardship notices between May 2022 and September 2024, in some cases taking over two years. The bank took action to recover debts even without responding to hardship notices, including issuing default notices and engaging external debt collection agencies. Additionally, ANZ failed to refund fees to thousands of deceased customers and did not respond to families dealing with deceased estates within required timelines.
ANZ chair Paul O'Sullivan apologised to customers, stating the bank has taken 'the necessary action, including holding relevant executives accountable'. He acknowledged that 'we made mistakes that have had a significant impact on customers'.
