This report examines the contemporary ethical issue of privacy and confidentiality in knowledge management, using Westpac Bank as a case study. The report begins with an introduction to the issue, highlighting the importance of privacy and confidentiality in the banking sector and the legal obligations, such as the Privacy Act 1993. It discusses the organization's background, emphasizing its role as a major financial institution in Australia. The core of the report focuses on the money-laundering scandal involving Westpac, where breaches of anti-money laundering laws occurred, leading to significant financial penalties and reputational damage. The report then explores current initiatives and developments undertaken by Westpac to address the issues, including changes in leadership and discussions with regulatory bodies. The challenges and implications of these issues are analyzed, emphasizing the importance of knowledge management practices in preventing ethical breaches, such as money laundering, and maintaining customer trust. The report concludes by underscoring the critical role of effective knowledge management in upholding ethical standards and ensuring the long-term success of financial institutions like Westpac.