In a landmark ruling that sends a shockwave through the financial sector, the ANZ Banking Group has been ordered to pay a staggering A$425 million (£240 million) penalty for what a judge termed 'widespread' and 'systemic' misconduct that betrayed its customers' trust.
The Federal Court found the bank guilty of a litany of serious failures, with one of the most egregious being the charging of periodic fees to over 190,000 deceased customers. This practice, which continued for years, was described by the Australian Securities and Investments Commission (ASIC) as a profound breach of trust.
A Litany of Failures
The record fine, the largest ever secured by ASIC against a bank, stems from conduct that occurred between 2016 and 2023. The court heard how ANZ:
- Charged over £13.5 million in fees to dead customers for services they could never use.
- Failed to provide promised banking services for which it had already collected fees.
- Engaged in 'fees for no service' misconduct on a massive scale.
Justice David O’Callaghan stated that the misconduct was not isolated but rather 'widespread, extending over a considerable period of time and across many areas of the bank’s business.'
'Time and Time Again, They Betrayed Trust'
ASIC Chair Sarah Court did not mince words, declaring, 'Time and time again, ANZ betrayed the trust of Australians by charging them for services they never received. Charging fees to deceased customers is simply unacceptable.'
The judge noted that while ANZ had self-reported some of the issues and cooperated with the investigation, the sheer scale and duration of the misconduct warranted the unprecedented penalty. The fine is a stark reminder of the corporate duty banks hold towards their customers.
Restitution and Repercussions
ANZ has paid over £66 million in compensation to more than 740,000 affected accounts. The bank's spokesperson acknowledged the failures, admitting they 'fell short of expectations' and apologised to their customers.
This case sets a powerful precedent for corporate Australia, signalling that regulators are prepared to take the strongest possible action to hold financial institutions accountable for systemic failures that exploit customer trust.
