Bendigo and Adelaide Bank hit with $50m charge for anti-money laundering failures
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The news: Bendigo and Adelaide Bank has been hit by a $50 million operational risk capital charge by prudential regulator APRA after an independent review found deficiencies in its money laundering and terrorism financing risk management.
The context: In late November, Bendigo told the exchange that a Deloitte review had identified “weaknesses and deficiencies” in its approach to money laundering and terrorism financing risk management. This was also reported to AUSTRAC.
APRA is requiring Bendigo Bank to hold an operational risk capital add-on of $50 million . It will be effective from 1 January 2026 and will remain in place until remedial measures are completed and wider concerns are addressed to APRA’s satisfaction, the regulator said.
The charge is expected to reduce the bank’s level 2 common equity tier 1 ratio by about 17 basis points. On 30 November 2025, the bank’s CET1 ratio was 11.19%, above the board’s target and APRA’s definition of ‘unquestionably strong’.
Other actions being undertaken by the regulators include:
- APRA will require Bendigo Bank to undertake a root cause analysis to understand the extent of non-financial risk management issues at the bank, going beyond money laundering and terrorism financing
- AUSTRAC has commenced an enforcement investigation which will focus on whether Bendigo Bank has complied with its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006
Bendigo will provide cost estimates of complying with the actions once determined.
What they said: “Although Bendigo and Adelaide Bank is financially sound and comfortably above its core capital and liquidity requirements, we are concerned there may be significant gaps in its risk management framework that need to be addressed urgently,” APRA chair John Lonsdale said.
“While the non-financial risk, anti‑money laundering spaces are a priority in light of the recent independent report, APRA is concerned that similar weaknesses may exist across the bank.”
Bendigo chair Vicki Carter said: "The Bank recognises robust risk management practices are critically important to ensure the Bank can continue to protect its customers and deliver on its purpose of feeding into the prosperity of customers and communities".
The sources: AUSTRAC media release, ASX
