Banks are starting to change their approach to reporting dodgy behaviour following action against the Commonwealth Bank, the money-laundering watchdog says.
In 2018, the CBA paid $700 million - the largest penalty in Australian corporate history - over serious breaches of anti-money laundering and counter-terrorism financing laws.
Westpac is now facing allegations it should have detected the activities of child exploiters.
Asked about the impact of the CBA action, AUSTRAC chief Nicole Rose told the National Press Club it had "absolutely" changed bank behaviour.
"After the CBA action, there was a great deal of reaction to the particular failings that CBA had and we saw a massive increase in reporting after that," she said.
"And similarly ... serious matter reporting and child sexual exploitation reporting has certainly increased in the last six months.
"That is what enforcement is about; it's about changing behaviour and making sure that attention is given to those particular areas of compliance."
Australian Associated Press
