When Commonwealth Bank of Australia (CBA) installed intelligent deposit machines (IDMs) it did so to make banking more convenient and save time for customers. Cash deposited was counted automatically and instantly available for domestic or international transfer from the customers’ account. It was no wonder the IDMs became very popular with small businesses. But criminals liked them too: terrorists and organized crime syndicates laundered millions through the IDMs. The scandal led to the largest civil penalty of in Australian corporate history at the time. The bank paid a record A$700 million fine and acknowledged deficiencies in oversight, accountabilities and resources as regards anti-money laundering/counter terrorism financing compliance and risk management.
• Teaches the importance of ensuring that operational and other risks are managed well
• Highlights governance failures at board and top executive level
Commonwealth Bank of Australia, Finance and Insurance, Banking
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