News: BOQ UPDATE 1-Bank of Queensland pledges to comply with anti-money laundering laws, manage...

(Adds details on the undertakings)

May 31 (Reuters) - Bank of Queensland Ltd (BOQ) said on Wednesday it had entered into separate undertakings with the country's financial crime and prudential regulators to comply with anti-money laundering and counter-terrorism financing laws and address risk governance practices.

The court-enforceable undertaking accepted by the Australian Prudential Regulation Authority (APRA) follows several breaches of prudential standards in 2022 and 2023, and consequent review into the company's risk culture, the regulator said in a separate statement.

The key terms of the undertaking submitted to the APRA include the preparation of a remedial action plan, which details all activities the bank is undertaking, and the appointment of an independent reviewer.

The APRA has also decided to add A$50 million to Bank of Queensland's operational risk capital requirement, which will remain in place until the company delivers a remediation plan that satisfies the regulator.

Meanwhile, the Australian Transaction Reports and Analysis Centre (AUSTRAC) said the company's action follows a compliance inspection by the regulator, which identified concerns relating to the adequacy of anti-money laundering systems and controls.

"The actions undertaken by AUSTRAC and APRA in relation to BoQ highlight whole of government efforts to maintain the integrity of Australia's financial systems," AUSTRAC CEO Nicole Rose said.