Smart ATM limit not the issue for CBA on money-laundering

APRA says bank controls, not ATM deposit limits, are a key issue in the CBA money-laundering allegations.

The parameters of the prudential regulator’s inquiry into Commonwealth Bank have become clearer after APRA chair Wayne Byres’ appearance before the agency’s parliamentary oversight committee.

There’s been a lot of noise about CBA inviting trouble by setting a $20,000 limit for its network of intelligent deposit machines (IDMs) when the Austrac disclosure threshold for suspicious transactions is only $10,000.

The other three major banks set a limit of $5000 for their smart ATMs.

Byres told the House economics committee that the limit “in and of itself” is not the issue.

CBA chief executive Ian Narev has been trying to make the same point since Austrac lodged its August 3 statement of claim against the bank, which alleges multiple breaches of anti-money laundering legislation.

Not surprisingly, he’s been drowned out by the chorus of condemnation.

Byres, however, clarified that the real issue is not the deposit limits but the controls surrounding the IDMs and whether they were working.

While he didn’t mention it, the terms of reference for the independent panel appointed by APRA last week also cover allegations that CBA failed to escalate compliance concerns when it was notified by law enforcement and bank staff.

Those concerns go to the heart of the bank’s culture and governance frameworks.