Short CBA into Austrac response, page-39

Huge development in the CommBank AML/CTF case, as revealed on Thomson Reuters Regulatory Intelligence this morning. The regulator has levelled a further 100 allegations against the bank, including claims that it was involved in moving funds for an Australian "foreign fighter" in Beirut.


The regulator has alleged that the bank failed to undertake proper due diligence on the customer, as the individual had opened a Dollarmite account with CBA in December 1995. The customer, who is identified in the documents as "Person 138", was treated as "pre-commencement" under the AML/CTF regime and therefore not re-identified or screened against watchlists, AUSTRAC has alleged.


The identification that the bank held on file was an Australian passport that expired on 28 January 1997, court documents state.


The allegations of serious terrorism financing links and a US-dollar nexus on some attempted transactions have escalated global regulatory interest in the case, Regulatory Intelligence understands.


Commonwealth Bank will release a formal statement later today.