AUSTRAC probes suspected CBA home loan fraud for money laundering risks
Australia’s biggest bank self-reported loans it suspected were fraudulent to the police. Now the feared financial crimes regulator is on the case.
The financial crimes watchdog AUSTRAC is examining whether home loans identified by the Commonwealth Bank as fraudulent were used to launder money.
AUSTRAC is probing whether borrowers laundered the proceeds of crime by using fraudulent documents to obtain loans and purchase property, two sources with direct knowledge of the matter told Capital Brief.
There is no suggestion that CBA facilitated money laundering, only that the relevant regulator AUSTRAC is investigating the possibility. CBA, ASIC and AUSTRAC all declined to comment on the matter.
On Friday the AFR first reported that CBA had identified $1 billion in potentially fraudulent loans on its books and self-reported them to the NSW Police and the corporate regulator ASIC. NSW Police was also contacted for comment.
