CBA calls in the cops
Police are working with CBA this week as AUSTRAC examines suspected loan fraud and laundering, in a warning shot for bank controls across the sector.
Detectives from the NSW Police financial crimes squad will meet with Commonwealth Bank representatives this week, after the bank self-reported loans it suspected were fraudulent.
It’s shaping up as a major test of banking controls and anti-money laundering systems, raising serious questions about how financial institutions verify their own borrowers.
Police told Capital Brief late last week that, while the investigation has not formally started, detectives will begin making inquiries this week to establish how deep and widespread CBA’s issues may be.
As we revealed on Friday, those detectives will be working alongside AUSTRAC as the financial crimes watchdog probes whether fraudulent loans were obtained to wash criminal cash.
