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Australia fines Macquarie Bank $6.4 mln for not preventing unlawful third-party transactions
By Jerry
April 19 (Reuters) – The Federal Court of Australia has fined Macquarie Bank A$10 million ($6.4 million) for its lack of controls to detect and prevent unauthorised fee transactions carried out by third parties on customer accounts, the securities regulator said on Friday.
The bank allowed customers to give third parties, such as financial advisers and stockbrokers, different levels of transaction authority, including to withdraw fees, the Australian Securities and Investments Commission (ASIC) said in a statement, opens new tab.
Macquarie Bank provided a bulk transacting tool to third parties to make multiple withdrawals across several customer accounts simultaneously.
However, between May 2016 and January 2020, it failed to implement controls to monitor whether third-party bulk transactions under the fee authority were actually for fees.
Macquarie said it acknowledged it had contravened a statutory obligation in this regard.
Source: REUTER
