ANZ faces record $240m penalty for ripping off customers and government

ANZ bank faces a record $240 million penalty for engaging in "unconscionable conduct" in some of its bond trading for the federal government, as well as "widespread misconduct" affecting nearly 65,000 retail customers.

The bank has agreed to the penalty with the Australian Securities and Investments Commission (ASIC), although it will require Federal Court approval.

ASIC said the settlement included $125 million for matters related to Australian government bond trading, where the bank misreported trading data and acted "unconscionably" while managing a $14 billion bond deal, which ASIC said had the potential to reduce the amount of funding available to the government.

The regulator said $115 million of the proposed penalty relates to customer failings.

ANZ failed to respond to hundreds of customer hardship notices, in some cases for more than two years.

Separately, ANZ made false and misleading statements about some of its savings rates, failing to pay the promised rate to tens of thousands of customers.

The bank also failed to refund fees to thousands of dead customers and was slow in responding to loved ones trying to manage deceased estates.

ANZ chair Paul O'Sullivan acknowledged the bank had "made mistakes that have had a significant impact on customers".

"On behalf of ANZ, I apologise and assure our customers we have taken the necessary action, including holding relevant executives accountable." Last week, ANZ's new chief executive Nuno Matos, who has only been in the role for a matter of months, announced the bank would be cutting 3,500 staff and around 1,000 contractor positions over the next year.

"The failings outlined are simply not good enough and they reinforce the case for change," he said in a statement.

"It is my expectation that we see measurable improvements across the bank to better protect and care for our customers and to create a more sustainable business."

[Source: abc.news]

Original Story Link: https://www.abc.net.au/news/2025-09-15/anz-record-penalty-asic-federal-court/105773084?utm_campaign=abc_news_web&utm_content=link&utm_medium=content_shared&utm_source=abc_news_web