Bank of Queensland pledges to comply with anti-money laundering laws, manage risks (updated)

Bank of Queensland

31/05/2023 24:21

(Adds details on the undertakings)
       May 31 (Reuters) - Bank of Queensland Ltd  BOQ.AX  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.

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Anil
D'Silva)
 ((Himanshi.Akhand@thomsonreuters.com;))