Australia’s ANZ to pay $160 million over bond deal and customer violations
Australia and New Zealand Banking Group (ANZ) has agreed to pay A$240 million ($159.5 million) in penalties—the largest ever imposed on a single entity by the Australian Securities and Investments Commission (ASIC)—over systemic failures ranging from acting “unconscionably” in a government bond deal to charging deceased customers.
“Time and time again ANZ betrayed the trust of Australians,” ASIC Chair Joe Longo said. “As far as the unconscionable conduct is concerned, it was clearly grubby,” News.Az reports, citing Reuters.
The settlement resolves five separate investigations across ANZ’s Australian Markets and Retail divisions. Central to the violations was ANZ’s handling of a A$14 billion government bond issuance on April 19, 2023. Rather than trading gradually, the bank sold large volumes of 10-year Australian bond futures just before pricing, putting “undue downward pressure” on bond prices and costing the government around A$26 million, ASIC said.
ANZ Chair Paul O’Sullivan acknowledged the bank’s failures:
“In reaching this settlement, we are acknowledging that we let our customers down and I apologise unreservedly.”
The violations also highlighted serious customer service issues. Between July 2013 and January 2024, ANZ failed to pay promised bonus interest to new account holders due to system deficiencies. Additionally, the bank continued charging fees to thousands of deceased customers for years.
ANZ CEO Nuno Matos said the bank is taking steps to reform:
“Change is needed, and we need to operate in a different way than in the past. That demands we do fewer things much better. We are getting the basics right again.”
The bank expects to spend A$150 million on internal reforms by the end of the 2026 financial year and will submit a remediation plan to the Australian Prudential Regulation Authority this month.
The settlement adds to ANZ’s regulatory record, with ASIC having brought 11 civil penalty proceedings against the bank since 2016, totaling more than A$310 million.
Shares in ANZ closed 0.6% lower, while the benchmark S&P/ASX200 fell 0.13%.
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