Australia and New Zealand Banking Group (ANZ) has admitted to widespread misconduct. The bank agreed with the Australian Securities and Investments Commission (ASIC) to pay a total penalty of A$240 million.
This settlement resolves four civil proceedings spanning market and retail divisions.
A key institutional breach involved a A14 billion government bond deal in April 2023. ANZ admitted to unconscionable conduct during this transaction. The bank sold bond futures around the pricing time. This action placed undue downward price pressure on the bond. ANZ also incorrectly reported bond trading data for almost two years.
Failure in retail customer care:
The penalty also addresses three separate retail banking matters. The misconduct affected approximately 65,000 customers over many years. ANZ failed to respond to hundreds of customer hardship notices. Some vulnerable customers waited over two years for help. The bank also made misleading statements about savings interest rates. This resulted in the wrong interest being paid to thousands of customers. Furthermore, ANZ failed to refund fees charged to thousands of deceased customers.
Regulatory and bank commentary:
ASIC Chair Joe Longo emphasized the significance of the resolution.
“The total penalties across these matters are the largest announced by ASIC against one entity and reflect the seriousness and number of breaches of law, the vulnerable position that ANZ put its customers in and the repeated failures to rectify crucial issues.”
ANZ Chairman Paul O’Sullivan issued an apology on behalf of the bank.
“The reality is we made mistakes that have had a significant impact on customers. On behalf of ANZ, I apologize and assure our customers that we have taken the necessary action, including holding relevant executives accountable.”
ANZ clarified that while ASIC has not alleged market manipulation, its conduct did not meet expected standards.
Backdrop:
This record penalty follows intense regulatory focus on Australia’s major banks. The 2018 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry exposed deep cultural flaws. Regulators are now demanding higher standards for non-financial risk management. The size of the penalty—which remains subject to Federal Court approval—sends a clear signal. It reinforces the expectation that banks must address systemic issues in their governance and compliance culture. ANZ has committed to a remediation plan to address these long-running failures.
