The Commonwealth Bank of Australia (CBA) is one of Australia’s largest financial institutions. Headquartered in Melbourne, CBA holds 25.5% of the overall banking market share and owns notable industry brands, Aussie Home Loans and Bankwest (Wu, 2016). The CBA employees 51,800 people in 11 different countries and generated an impressive $9,981 million dollar net profit for the 2017 financial year (Commonwealth Bank of Australia, 2017a). On the 3rd August 2017, AUSTRAC, Australia’s financial intelligence agency, commenced civil proceedings against CBA for contravening the Anti-Money Laundering and Counter-Terrorism Financing (AML/CT) Act 2006 (AUSTRAC, 2017a). AUSTRAC claim that CBA failed to comply with the AML/CT Act (2006), on 53,700 occasions (AUSTRAC, 2017a). …show more content…
The bank attributed the absence of reporting to a software coding issue from an update to the IDM’s in late 2012. The problem was that this coding error was not identified until 2015, allowing AML/CT transactions to go unnoticed for almost 3 years, strongly suggesting CBA did not have the adequate auditing, compliance, or regulatory controls in place to mitigate the preventable risk. One such example has found a drug criminal solely responsible for laundering $21 million dollars within a 9-month period using the flawed CBA technology (Chenoweth,
For Tenth National Bank, we have reason to believe that the client intercepted the paper confirmation. After we sent the paper confirmation to the bank, we received an email from Lou Jennings stating that the bank forwarded the confirmation directly to their office instead of sending it to the audit team. In addition, Mr. Jennings provided login credentials and a link to the bank’s website, which did not appear to be reliable. As per the video, “How to Fight Confirmation Fraud”, presented by the founder of confirmation.com, Brian Fox, a fictitious website can be created easily. Our skepticism toward the reliability of the website is based on the unresponsiveness of most of the links on the site; the only link that works is the login button. In addition the website appeared dated and rudimentary. Another factor we found quite strange is that the website only offers paper statement deliveries, which we find highly unusual since paper statements are easier to modify. Furthermore, based on the tracking provided by USPS, the letter is still in the shipping process with no indication that Tenth National Bank has officially received the request for confirmation. This further supports our theory that Lou Jennings intercepted the Tenth National Bank confirmation letter. In our o...
As one of Australia's oldest bank, WBC was formerly known as New South Wales Bank and founded in 1817. In 1982 this bank has changed its name to west bank of the Pacific Ocean.
The charges only occurred after an investigation from the Australia Federal Police (AFP) to customs of information, as they were able to listen to conversations of taxpayers home, mobile and work telephones. The taxpayer then took legal action, which proceeds in the Federal court and High court of Australia, but the charges were unsuccessful and were not used because the AFP unlawfully passed the information used on the telephone conversations to customs.
The cons to the argument for saying the Foreign Corrupt Practices Act is obsolete is discussed in the article With Wal-Mart Claims, Greater Attention on a Law by Charlie Savage. In this article Charlie Savage argues that the FCPA has always been a useful tool in stopping corruption but in recent years with companies becoming more globalized other countries gradually adopted similar laws, the United States has started to enforce it more strictly. The dollar amount of fines imposed by the Justice Department and the Securities and Exchange Commission has increased even more, including a record-setting $800 million paid by Siemens in 2008. Enforcement under the act has soared, from just two enforcement actions in 2004 to 48 in 2010. There are currently at least 100 open investigations, specialists estimate.
President’s Commission on Organised Crime 1984, Interim Report to the President and Attorney General, The Cash Connection: Organized Crime, Financial Institutions, and Money Laundering, viewed 28 March 2014, https://www.ncjrs.gov/pdffiles1/Digitization/166517NCJRS.pdf
The AICPA Code of Professional Conduct is to keep CPA’s responsible for their actions they take. They need to be honest, have integrity, and stay objective. In the case of Worldcom, the CPA’s did not stay to the AICPA rules of conduct. The CEO or CFO did not let an accountant know what they were doing with the funds, and this made the accountants lie on their financial statements. This is why a business needs to be audited every few months, it helps to see if a company is following the rules and doing what they need to do.
The structure of Australia’s banking industry is similar to that of an oligopoly, which poses the threat of minimising competition. The structure, performance and conduct of banks are important as they ensure that they act competitively, however in Australia the market is dominated by four major banks threatening competition. The structure in the Australian banking industry is fairly oligopolistic, decreasing the amount of competition evident in the market. Performance of the dominating banks has shown an increase in the profitability and return of assets compared to international banks in a freer market. Through minimal competition, the conduct of the industry has slightly diminished with an increase in fees, and inquiries into possible collusion. The structure, performance and conduct paradigm of the Australian banking industry threatens the competition evident in the market.
SEWA was the brain child of Gandhian and civil rights leader Ela Bhatt and was founded in 1972, It was conceived as a branch of Textile Labour Association (TLA) which was founded by Gandhi in 1918. It was in 1972 when Gujarat became the first state in India to register the Self Employed Women's Association (SEWA) as a trade union. The main objective of this step was to improve their income by"strengthening its members' bargaining power” and providing more employment and accessibility to social security. Taking a step ahead in 1973 the members of SEWA decided to found "a bank of their own" with a view to address their lack of access to financial services. The named it as Mahila SEWA Co-operative Bank to which four thousand women contributed
Equity bank will faces political, economic and financial risks associated with setting up operations and thereafter when operating in Zimbabwe. Whichever strategy Equity Bank selects for expanding into Zimbabwe, either by building operations from scratch for acquiring existing lenders (which should be the preferred method), they face heightened political and economic risks. These risks will hinder them from fulfilling their objectives of expanding the operations and they may not be able to satisfy their shareholder expectations of profit maximizations. There are few other specific challenges and risks are explained below.
Askari Bank’s Organizational Design is bureaucratic because it is principally owned by the army and its working methods are directed by the board members of the bank.
In this case study it was stated that there were a problem happen in the outsourcing for the Royal Bank of Scotland. What happen was there were an error that happen during the routine software upgrade that cause million of that bank customer cant access to their account. The error happen when one junior technician in India was accidently wiped all the information during the routine software upgrade. The member of staff that was working under the program for the Royal Bank of Scotland, NatWest and Ulster Bank and it was based in Hyderabad, India.
According to Cheang (2004), the universal bank can be defined as the banking system in which the bank offer the whole variety of financial products and services. He also states that it combines both investment banking and commercial banking, for example, lending and taking a deposit, selling insurance, issuing underwriting, investing and trading in securities. To me therefore, the universal bank refers to the banking system which operates completely financial services like a supermarket.
Central Bank is the main important institution that playing roles as the center of the financial system which have functions to control a financial stability and monetary stability in the country. Whether the financial system is running well or there might be happened a trouble while organize the financial system, all of that and all the activities related to financials are fully a responsible of Central Bank in each country.
Many groups of people use money laundering today, and many ways exist to launder money. Money laundering has become more sophisticated over the years. It is much different then when Al Capone laundered his bootleg profits. The United States is doing what they can to combat this illegal activity but without the help of others it is an impossible task. Many countries have teamed up with the Unites States to help. The only way to truly combat it is to persuade the other countries to develop anti-laundering standards. Along with developing these standards, banks need to train their staff on how to catch different transactions and policies to catch money laundering. Because laundering is so easy in these less developed countries laundering will continue, and while this illegal activity continues the activity itself will continue to destroy the economy in which it exists.
United Bank of India is one of the prominent nationalised banks in the country that have played a major role in spreading banking services to the farthest Eastern and North-Eastern parts of the country. UBI has sponsored 4 RRBs (Regional Rural Banks) in states such as West Bengal, Assam, Manipur, and Tripura. The four RRBs have around 1,000 branches in these states and UBI contributes more than 35% of share capital/additional capital of these banks.