Controversy over reporting of Suspicious transactions in the biggest Australian Bank

Commonwealth Bank of Australia in the controversial money laundering case

Australian Transaction Reports and Analysis Center (Austrac) accused the Commonwealth Bank of Australia of more than 50,000 breaches of the Anti Money Laundering laws by failing to adequately monitor A$624.7 millions worth of transactions on its network of Intelligent Deposit Machines.

CBA is accused of failing to adequately report suspicious transactions to Austrac worth A$77 millions resulting in non-monitoring of suspicious customers after it got to know of possible money laundering.

However, the root cause of the problem is seen to be the error in the software code written for Intelligent Deposit Machines. There was a coding error during a software update to the machines in late 2012. As a result of this error the machines could not create necessary suspicious transaction reports. This error was noticed by the bank only in 2015.

It is one of the most interesting cases where the bank entered into breach of the laws inadvertently due to its poor programming capabilities.