Westpac and ANZ punished by regulator
ANZ and Westpac will pay $6m to charity and have agreed to independent scrutiny into their wholesale foreign exchange businesses as part of a settlement with the Australian Securities and Investments Commission (ASIC). This comes after the regulator found that during a five year period, between 2008 and 2013, both banks failed to maintain systems capable of spotting inappropriate conduct. 

Banking giants Westpac Banking Corp and the Australia and New Zealand Banking Group will donate $6 million to charity and submit their wholesale foreign exchange arms to independent scrutiny as part of a settlement with the corporate regulator.

The Australian Securities and Investments Commission on Wednesday announced it reached a deal with Westpac and ANZ to set up so-called 'enforceable undertakings' that will commit the banks to good behaviour after problems were discovered in their wholesale foreign exchange businesses.

An ASIC investigation into a five year period between 2008 and 2013 bound both banks failed to have systems strong enough to spot inappropriate conduct identified including the disclosure of confidential client trading information to external traders through the use of code names.

"The foreign exchange market is a systemically important market that depends on all participants acting with integrity and fairness. ASIC is committed to ensuring that major financial institutions have the systems in place to ensure that financial services are provided fairly, honestly and efficiently," said ASIC Commissioner Cathie Armour.