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Anti Money Laundering at Bank ATM Assignment

   

Added on  2020-03-23

11 Pages2798 Words90 Views
Political Science
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Running head: ANTI MONEY LAUNDERERING AT BANK ATMCommonwealth Bank of Australia and its Money Laundering ControversyName of the Student:Name of the University:Author Note:
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1ANTI MONEY LAUNDERERING AT BANK ATMExecutive Summary:Commonwealth Bank Limited is one of Australia’s biggest bank having more than a thousandbranches and close to five thousand ATMs. The bank serves a huge consumer base bothcommercial organizations and individual customers with several financial products like financeand insurance and consumer banking. The paper draws its strength from a controversy in whichthe bank found itself and had to pay a fine of $ one billion. The Australian Transaction Reportsand Analysis Centre(Austrac), Australia’s financial agency on several occasions pointed outsuspicious transactions worth millions using the ATMs of the bank. The bank did not reportillegal transactions worth $ 77million to the body and hinted an alleged involvement in thoseactivities. The paper studies this failure of the apex management of the bank to protectstakeholders’ interest in the light of two organizational theories, the stakeholders and thebureaucratic theory. The assignment ends with recommendations to the management of the bankto control these controversial activities in the future.
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2ANTI MONEY LAUNDERERING AT BANK ATMTable of ContentsExecutive Summary:........................................................................................................................1Introduction:....................................................................................................................................3Issues and Analysis:.........................................................................................................................3Reasons for Commonwealth Bank failing to control AML transactions:.......................................3Commonwealth Bank’s failure to control money laundering explained on two theories:..............4Stakeholder’s theory and its application in Commonwealth Bank’s failure:..............................4Accountability of the managers and leaders of Commonwealth Bank:..........................................5Theory of bureaucracy:................................................................................................................5Accountability of the bureaucratic system of Commonwealth Bank:.........................................6High level recommendations to the management of Commonwealth Bank:..................................6Conclusion:......................................................................................................................................7References:......................................................................................................................................9
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3ANTI MONEY LAUNDERERING AT BANK ATMIntroduction:The aim of the paper is to analyze and reflect how management, leadership andstewardship practices influences performances of organizations, individuals and teams in thelight of two organizational theories. The paper considers Commonwealth Bank of Australia andits questionable practices which failed to curd several money laundering activities conductedthrough its ATMs as the background of its studies. The chosen organization for the study,Commonwealth Bank is a multinational bank with its head office in Sydney, Australia. The bankis listed on the Australian Securities Exchange and functions under the leadership of Ian Narev,its CEO and managing director. It offers a wide range of financial products like consumerbanking, corporate banking, investment banking and global wealth managementservices(Commbank.com.au. 2017). The questionable practices of the Commonwealth Bank under discussion are the uses ofits ATMs by illegal syndicates to conduct money laundering and failure of the bank to controlsuch activities. The Australian Transactions Reports and Analysis Center(Austrac), Australia’smoney laundering supervising authority pointed out these transactions on several occasions butthe bank failed to take steps. The bank found itself under serious public scrutiny and the othercommercial banks distanced themselves from conducting business with it. The bank also founditself under penalty of nearly $ one billion imposed on it by Austarc. The paper explains theseincidences in the light of two organizational theories, stakeholders’ theory and the bureaucratictheory. The paper ends with high level recommendations made to the management of the bank toavoid such controversies in the future.Issues and Analysis:Reasons for Commonwealth Bank failing to control AML transactions:Commonwealth Bank failed to prevent the use of its ATMs for antimony laundering(AML) activities and cited coding errors as the reason for it. Another reason cited by themanagement of the bank for this questionable organisational and management practices was itslarge size and complex transactions. The management also judged the money laundering and
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