Libs turn on Westpac as union focus challenged

Peter Dutton has accused Westpac of giving ‘a free pass to pedophiles’.

Home Affairs Minister Peter Dutton. Picture: AAP

Peter Dutton has accused Westpac of giving “a free pass to pedophiles” as Anthony Albanese sought to capitalise on the latest banking scandal to attack the government’s Ensuring Integrity laws.

The Home Affairs Minister used a question in parliament to promote the work of Austrac, which is taking civil proceedings against Westpac over allegations it broke anti-money-laundering and counter-terrorism finance laws 23 million times. “Westpac Banking bosses, through their negligence, have given a free pass to pedophiles and there is a price to pay for that, and that price will be paid,” Mr Dutton said.

“We have no more important undertaking as a government than to keep Australian children safe. We will continue to do it. It is clear that the Westpac Banking bosses have failed that obligation.”

The attack came towards the end of the first question time of the final sitting fortnight of the year, with the Opposition Leader opening the session by asking Scott Morrison about an “organisation” that broke money-laundering laws 23 million times. “Was it a union or a bank?” he asked.

The Prime Minister said he introduced a crackdown on bank executives when he was treasurer, through the Banking Executive Accountability Regime. He ­argued that the penalties under the crackdown were tougher than those in the Ensuring Integrity Bill before the Senate.

Under the BEAR, Mr Morrison said, the maximum civil penalty was $210m for large banks, $52.5m for medium-sized banks and $10.5m for small banks. He said individuals could be disqualified, have their remuneration reduced, face civil penalties of up to about $1m and face criminal penalties of up to 15 years’ jail.

“I note that (under) the Ensuring Integrity Bill, the penalty may be up to $21,000 or two years’ imprisonment. So, Mr Speaker, I won’t cop it from those opposite coming in here and making these accusations,” he said.

Labor Treasury spokesman Jim Chalmers criticised Mr Morrison for trying to pass legislation aimed at unions when Westpac had ­allegedly breached the law 23 million times. “Scott Morrison thinks that a union making three mistakes on their paperwork is a bigger threat to Australia than 23 million breaches of the law by one of the big four banks. That’s why he resisted the banking royal commission,” he said.

He also told Sky News the “book should be thrown” at Westpac executives if they were 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 said.

Finance Minister Mathias Cormann described the alleged breaches by Westpac as “pretty outrageous”.

Senator Cormann said it was particularly disappointing “given the previous events that occurred in the context of the Commonwealth Bank of Australia”.

“You would have thought that all banks appropriately reviewed their operations in relation to these matters. I’m confident that, as this plays out, that judgments will be made,” he said.