Westpac: Scott Morrison ‘appalled’ at bank’s non-compliance with anti-money laundering legislation

Scott Morrison says the allegations show more change is needed in the financial services industry.

Prime Minister Scott Morrison.

Scott Morrison says he is “absolutely appalled” by allegations Westpac broke financial crime rules 23 million times, declaring the “banks need to lift their game”.

The Prime Minister said the allegations against Westpac, which includes failing to monitor and report transactions that had child exploitation risks, showed more change was needed in the financial services industry.

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The civil proceedings against Westpac were announced on Wednesday morning by the anti-money laundering and counter-terrorism financing regulator, the Australian Transaction Reports and Analysis Centre (Austrac).

“Banks need to keep lifting their game but it also shows that our cop on the beat, Austrac, is doing their job,” Mr Morrison said on Wednesday morning.

“They have just got to lift their game on this stuff. It is a fairly damning indictment about some of the processes and procedures they have had in place.”

Mr Morrison used the Westpac controversy to also urge the banks to lend to small business and first home buyers.

“The banks need to lift their game but they also need to keep doing the lifting in terms of the vital, channel of finance and support that they provide to the economy,” Mr Morrison said.

“Both with small and medium-sized businesses, as well as with those in the housing market. Two-thirds of the Australian economy is not the government. It’s actually the private sector. And that’s where we want to see the investment.”

Opposition Treasury spokesman Jim Chalmers said the “book should be thrown” at Westpac executives if they are found guilty of the “concerning, astounding and appalling” allegations.

“Let’s wait and see what the various legal processes uncover but on the face of it these allegations are extraordinarily serious,” Dr Chalmers told Sky News.

“Any breach on its own is serious but when it adds up to millions of breaches and billions of dollars then something very serious is alleged to have gone wrong here. If they have done the wrong thing then the book should be thrown at them.

“If (the allegations) are right, and there is no indication that they are wrong, then Westpac has got some very serious questions to answer about their governance and their processes.“