Sydney — Commonwealth Bank of Australia, the nation’s biggest lender, has been hit with a public inquiry into its governance and culture — the second regulatory probe to be launched this month after it was accused of massive breaches of money-laundering rules. The move represents the first time that the Australian Prudential Regulation Authority will hold a public inquiry into a lender and heightens pressure on the government to hold a broad parliamentary probe — known as a royal commission — into the banking sector. CBA was sued this month by financial intelligence agency Austrac, which alleges that criminals and terrorism financiers laundered millions of dollars through CBA accounts — the first lawsuit of it kind against a major Australian bank and exposing CBA to a fine potentially amounting to billions of dollars. Since then, the Australian Securities and Investment Commission has launched a separate probe while a class action law firm is planning a suit on behalf of shareholder...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.