AUSTRAC finalises enforceable undertaking with NAB
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The news: Financial crime watchdog AUSTRAC has finalised the enforceable undertaking (EU) with big four lender NAB, agreed in April 2022, aimed at addressing the bank's compliance with aspects of Australia's anti-money laundering and counter-terrorism financing (AML/CTF) laws.
The context: AUSTRAC said NAB has satisfied its obligations under the agreement and demonstrated a commitment to ongoing compliance.
The EU was specifically aimed at addressing concerns regarding NAB’s customer identification procedures, ongoing customer due diligence and the adoption and maintenance of a compliant AML/CTF program.
An independent external auditor found NAB had satisfied the terms of the EU, highlighting the bank’s commitment to transparency, accountability and commitment to sustainable remediation.
The external auditor also made recommendations outside the EU scope to further enhance the bank’s AML/CTF program, including around transaction monitoring and assurance frameworks. NAB has accepted all recommendations.
What they said: "Through a transparent and constructive process with AUSTRAC and the external auditor, NAB has transformed our approach to managing financial crime," said NAB chief executive Andrew Irvine.
AUSTRAC CEO Brendan Thomas commented: "The closure of this EU reflects the progress NAB has made but it still doesn’t give the business a clean bill of health."
"The EU set NAB on the right path, but compliance is not a one off task – it requires ongoing, incremental change. AUSTRAC expects NAB to continue to improve its systems and processes."
