AUSTRAC has recently begun civil proceedings against Westpac Bank (WBC) in relation to the alleged contraventions of its AML/CTF obligations. In particular, AUSTRAC has accused Westpac of $23 million breaches, including a small number of transactions that appear to be linked to child exploitation in the Philippines.

Although difficult to estimate, it is expected, WBC will receive a large fine well in excess of what CBA was given earlier his year.

Since the announcement on 20th November, Westpac’s share price has fallen approximately 7.5%.

Despite the immediate issues facing the company, it is still a good cash generating business and there may be future opportunities that warrant further investigation and as the old saying in financial services circles goes, ‘don’t try and catch a falling knife – let it hit the floor and then pick it up.’

Please note this article provides general advice only and has not taken your personal, business or financial circumstances into consideration. If you would like more tailored advice, please contact us today.