Commonwealth Bank's record AU$9.88b profit eclipsed by Austrac proceedings

Commonwealth Bank's record AU$9.88b profit eclipsed by Austrac proceedings

Commonwealth Bank's record AU$9.88b profit eclipsed by Austrac proceedings

In fact, while unlikely, if Commonwealth were to be hit with the maximum penalty for every alleged breach, the total fine would reach A$966.6 billion.

"You can no longer tinker at the edges of regulators powers or amendments to certain laws when you have these very, very serious allegations that go to the heart of how our banking system is operating", she told reporters. referring to allegations the CBA failed to abide by anti money-laundering and counter-terrorism laws.

"Therefore, in advance of the presentation of CBA's financial results tomorrow, the board advises that it has chose to reduce to zero the short-term variable remuneration outcomes for the CEO and group executives for the financial year ended 30 June 2017", the announcement said.

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

Catherine Livingstone, the chair of the CBA, says the bank now has a dedicated sub-committee of four directors to oversee the response to AUSTRAC's (Australia's financial intelligence and regulatory agency) statement of claim and a program of action.

"We know that we've made mistakes", Narev said on Wednesday as he discussed the bank's full-year results. It alleged that the bank had committed nearly 54,000 breaches of the law by failing to report suspicious transactions on time.

Throughout the 2017 financial year, the bank toyed with a handful of emerging technologies, such as blockchain.

"We're in discussions and the outcome is uncertain and all of this stuff is very commercially sensitive", he said.

CBA said that, since it discovered and fixed the error in 2015, it has changed oversight of financial crimes compliance, recruited more than 50 specialists and upgraded monitoring.

At the same time, CBA also opened the doors to an innovation lab in London, joining Barclays' own Rise innovation hub, which has focused on fintech since 2014.

The bank also launched a new business analytics platform that aims to provide small-to-medium enterprises with access to big data earlier this year, and recently partnered with Airtasker to provide the outsourcing company with an identity verification function for its online platform. Cash net profit for the division also dropped by 26% to $202 million.

Speeding up amortisation - the spreading out of payments over multiple periods - of technology assets gives smaller pieces of software shorter and more useful lives.

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