Financial institution ANZ to pay a sum of $160 million due to customer violations, in connection with a bond deal.
In a significant development, the Australian banking giant ANZ has agreed to pay a record-breaking A$240 million in penalties, following a series of investigations into its conduct. The penalties, the largest ever by a single entity in Australia, are due to systemic failures, including unconscionable actions in a government bond deal and charging dead customers.
Central to the violations was ANZ's conduct during a A$14 billion government bond issuance on April 19, 2023. The Australian Securities and Investments Commission (ASIC) found ANZ's trading behavior pushed bond futures pricing down 2 basis points, which cost the government about A$26 million.
Since 2016, ASIC has brought 11 civil penalty proceedings against ANZ, totaling over A$310 million in penalties. The latest settlement resolves five separate investigations across ANZ's Australian Markets and Retail divisions. ANZ has admitted allegations in each case, according to ASIC.
One of the most troubling revelations is that ANZ continued charging fees to thousands of dead customers for four years, from June 2019 to June 2023. The bank also failed to pay promised bonus interest to new account holders between July 2013 and January 2024 due to system deficiencies.
In response, ANZ Group's new CEO, Nuno Matos, who joined the company in May 2025 from HSBC, has announced a series of reforms. ANZ is expected to spend A$150 million implementing these reforms in the financial year ending September 30, 2026.
The penalties come amidst a broader context of job cuts in the banking sector. Last week, ANZ announced 3,500 job cuts as part of an effort to improve profitability. The Finance Sector Union has lodged a claim against ANZ for these job cuts with Australia's industrial tribunal.
Despite the penalties, ANZ's new CEO, Nuno Matos, has emphasised the bank's commitment to rectifying its mistakes. In a statement, Matos admitted that ANZ made serious mistakes but denied acting with bad intent. A spokesperson for Treasurer Jim Chalmers stated that every company operating in Australia should follow the laws or face consequences.
It's important to note that ANZ has not participated in a government deal since the transaction more than two years ago. The bank's shares closed 0.6% lower on Monday, reflecting investor concerns about the financial implications of the penalties.
In an effort to hold individuals accountable, 50 'accountability reviews' were carried out on employees in ANZ's markets trading business. Some current and former staff had variable components of their pay significantly impacted due to these reviews.
This settlement marks a significant milestone in ANZ's efforts to regain public trust and confidence. As the bank moves forward, it will be crucial for Matos and his team to implement the necessary reforms and ensure that such incidents do not occur in the future.
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