Australia's ANZ bank hit with record fine over 'widespread misconduct'

SYDNEY: Australia's ANZ, one of the country's "big four" banks, has agreed to pay a record fine of Aus$240 million ($159.5 million) over "widespread misconduct", the financial regulator said Monday.

ANZ was fined for "acting unconscionably" while managing a $14-billion bond deal with the Australian government.

It was also accused of "failing to respond to hundreds of customer hardship notices", making false or misleading statements about its savings interest rates and failing to refund fees charged the dead customers, the Australian Securities and Investments Commission (ASIC) said.

‘Betrayed the trust’  

"Time and time again ANZ betrayed the trust of Australians," Joe Longo, chair of the ASIC, said.

"Banks must have the trust of customers and government. This outcome shows an unacceptable disregard for that trust that is critical to the banking system," he said.

The fine is the largest ever announced by the regulator against a single entity, Longo said.