The Australian Prudential Regulation Authority (APRA) and the Australian Transaction Reports and Analysis Centre (AUSTRAC) announced coordinated actions to address weaknesses in Bendigo and Adelaide Bank’s money laundering risk management, broader non-financial risk management practices and risk culture. The steps follow an independent Deloitte review into suspected money laundering at a Bendigo Bank branch, which the bank reported to AUSTRAC, that identified significant deficiencies in the bank’s approach to identifying, mitigating and managing money laundering and terrorism financing risk. APRA will require Bendigo Bank to undertake a root cause analysis to determine the extent of non-financial risk management issues across the bank, going beyond money laundering and terrorism financing, and will require the bank to hold an AUD 50 million operational risk capital add-on. AUSTRAC has commenced an enforcement investigation focused on whether Bendigo Bank has complied with its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. The capital add-on will remain in place until remedial measures are completed and wider concerns are addressed to APRA’s satisfaction, and the agencies indicated the announced steps do not preclude further action.
Australian Prudential Regulation Authority 2025-12-18
Australian Prudential Regulation Authority orders Bendigo Bank root cause review and AUD 50 million capital add-on as Australian Transaction Reports and Analysis Centre opens AML enforcement investigation
APRA and AUSTRAC are addressing deficiencies in Bendigo and Adelaide Bank's money laundering risk management after a Deloitte review. APRA requires a root cause analysis and an AUD 50 million operational risk capital add-on, while AUSTRAC has initiated an enforcement investigation under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.