APRA commenced its investigation in 2019 to examine prudential concerns arising from allegations that Westpac had breached anti-money laundering and counter-terrorism laws. Having “carefully considered” the result of ASIC’s investigation – to which it had delegated certain enforcement powers – APRA has closed its investigation.
Westpac remains subject to a court-enforceable undertaking, while the $1 billion operational risk capital add-on, reflecting the bank’s “heightened operational risk profile”, will remain in place until Westpac completes its remediation.
“Although the investigation has not found evidence of breaches of the Banking Act or the BEAR, APRA remains determined to ensure Westpac rectifies its risk governance weaknesses effectively and sustainably,” said APRA deputy chair John Lonsdale.
“Under the enforceable undertaking, Westpac has clearly defined Executive and Board accountabilities for the implementation of its integrated risk governance remediation plan. APRA will be holding Westpac to account for the delivery of the required improvements.”
