AUSTRAC has accepted an enforceable undertaking from National Australia Bank (NAB) to uplift its compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
The action follows an AUSTRAC enforcement investigation which identified concerns about NAB’s AML/CTF program, systems and controls.
The financial intelligence agency identified non-compliance in targeted compliance assessments, as well as through self-disclosures from NAB.
It then notified NAB of the formal enforcement investigation into five NAB reporting entities in June 2021, following ongoing regulatory engagement. The entities included National Australia Bank Limited, JBWere Limited, Wealthhub Securities Limited, Medfin Australia Pty Ltd, and AFSH Nominees Pty Ltd.
AUSTRAC chief executive, Nicole Rose, said the enforceable undertaking would aim to ensure NAB continued with its remediation program to uplift its compliance and combat the risks of serious and organised crime.
“National Australia Bank has demonstrated a commitment to uplifting its AML/CTF controls, and has undertaken significant work identifying and implementing improvements to its programs.
“NAB has worked collaboratively with AUSTRAC throughout the investigation, and this enforceable undertaking will help to ensure NAB meets its compliance and reporting obligations,” Rose said.
NAB had undertaken to implement a comprehensive remedial action plan, which would see improvements to its systems, controls and record-keeping, including:
- The NAB designated business group AML/CTF program;
- Applicable customer identification procedures;
- Customer risk assessment and enhanced customer due diligence;
- Transaction monitoring; and
- Governance and assurance.
