CBA dumps short-term bonuses for execs this year

  • CBA dumps short-term bonuses for execs this year

CBA dumps short-term bonuses for execs this year

The bank will also buy the remaining 20 percent of mortgage broker Aussie Home Loans it doesn't now own, after founder John Symond exercised his option to sell the stake.

The bank's board said it has established a dedicated sub-committee of four directors to oversee CBA's response to AUSTRAC's statement of claim filed in the Federal Court.

CBA has argued that the laundering violations arose after technology linked to automatic deposit machines amplified one error into thousands of lapses.

Narev received a A$2.86mil (US$2.26mil) short-term bonus in the fiscal year ended June 30, 2016, as part of total remuneration of A$12.3mil, according to the lender's annual report.

In response to Austrac's allegations, CBA said that much of the blame for the lack of filing was due to a "coding error".

In the case of Mr Narev, who is likely to announce a record full-year profit of nearly $10 billion, the decision could cost him close to $1.5 million. The prudential regulator in July said the major banks needed to lift their capital ratios to at least 10.5% by 2020 to ensure they can withstand future crises. "We have fixed a lot of those mistakes and we will continue to work to make our business better".

The bank's board also chose to reduce Non-Executive Director fees by 20 per cent in the current 2018 financial year.

Austrac detailed 53,700 alleged breaches of the Act, which included failing to hand 53,506 threshold transaction reports (TTRs) for cash transactions over AU$10,000 to Austrac through intelligent deposit machines (IDMs) for nearly three years between November 2012 and September 2015.

"In the meantime, CBA remains committed to continuously improve its compliance with the Anti-Money Laundering/Counter Terrorism Act and will continue to keep AUSTRAC abreast of those efforts", it added.

In an initial response to the charges, CBA said on August 3 it "would never deliberately undertake action that enables any form of crime".

Overall, CBA's net profit after tax for the year increased by five per cent, year-on-year, to $9.88 billion.

CBA also said it is in talks to sell its life insurance arm, among other options.