ING strengthens ‘shortcomings’ in money laundering controls: AUSTRAC

Financial crimes regulator AUSTRAC on Thursday (24 November) said it had accepted a court-enforceable undertaking from ING’s Australian business, with ING agreeing to “uplift its compliance” of suspicious transactions, risk assessments, and its anti-money laundering and counter-terrorism financing (AML/CTF) laws.

The regulator said ING self-identified and voluntarily reported shortcomings in relation to its compliance with its anti-money laundering obligations.

The resulting regulatory inquiries, including an investigation, identified concerns in relation to the AML/CTF controls and reporting to AUSTRAC.

It comes after AUSTRAC imposed record fines on Commonwealth Bank (CBA) and Westpac for anti-money laundering breaches, with CBA subject to an ongoing class action, which alleges that the bank knew about serious instances of non-compliance with the AML/CTF Act.

In this latest anti-money laundering investigation, ING Australia’s chief executive, Melanie Evans, said shortcomings were reported to AUSTRAC in August 2020 and the group had “prioritised implementing a well-resourced uplift program to address them”.

“Protecting customers, the wider community and the financial system is something we are committed to at ING … [and] to ensure we meet our obligations to help combat the risks of serious and organised crime,” Ms Evans said.

AUSTRAC acknowledged the work ING had undertaken to “improve their AML/CTF governance” and said it will continue to monitor the bank’s progress to ensure “actions are undertaken”.

Ms Evans said ING had made “substantial investment in programs of work” to better detect, deter, and disrupt the flow of illegal money through the financial system.

“The EU Remedial Action Plan reflects this ongoing commitment and builds on the progress we’ve already made,” Ms Evans said.

“We will continue to work closely with AUSTRAC to complete this incredibly important program of work.”

The two entities in the ING Bank Australia group include ING Bank Australia Ltd and ING Bank N.V., Sydney Branch.

AUSTRAC CEO, Nicole Rose, said it was important that all businesses have “robust systems in place” to ensure they meet their AML/CTF obligations and play their part in protecting Australia’s financial system from exploitation by criminals.

“ING have been fully cooperating with AUSTRAC throughout our regulatory inquiries and have demonstrated an ongoing commitment to addressing concerns about the effectiveness of their AML/CTF systems and controls,” Ms Rose said.

“We look forward to continuing to work with them to ensure they meet their obligations under the AML/CTF Act.”

In 2021, AUSTRAC released a series of money laundering and terrorism financing risk assessments relating to banking operations in Australia, which provide information and guidance to support banks and their branches.

[Related: CBA class action goes to federal court]