We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
National Australia Bank (NABZY) Faces Probe for Money Laundering
Read MoreHide Full Article
National Australia Bank Limited (NABZY - Free Report) might have to face higher compliance costs as it is being investigated for potential serious and ongoing anti-money laundering and counter-terrorism law breaches. Per the Australian Transaction Reports and Analysis Centre (“AUSTRAC”), the bank’s problems were “potential serious and ongoing non-compliance” with customer identification procedures, customer due diligence and other compliance requirements.
While the financial crime regulator felt that there were “areas of serious concern,” which needed further investigation, it did not consider a civil penalty order at this stage.
AUSTRAC stated, “AUSTRAC's concerns emanate from historical and contemporary compliance assessments. In particular, the seriousness of self-disclosed matters presented to AUSTRAC over a prolonged period combined with the accompanying closure rates is concerning.”
Notably, now the investigation will be handled by AUSTRAC’s enforcement team.
National Australia Bank is ready to cooperate with the regulator. Its chief executive officer, Ross McEwan, stated, “NAB has an important role in monitoring and reporting suspicious activity and keeping Australia’s financial system, our bank and our customers safe. We are very aware that we need to further improve our performance in relation to these matters. We have been working to improve and clearly have more to do.”
So far this year, shares of National Australia Bank have gained 22.9% compared with 23.4% growth recorded by the industry it belongs to.
Several banks continue to encounter legal probes and are charged with huge sums of money for business malpractice. Recently, Deutsche Bank AG (DB - Free Report) was privately reprimanded by the Federal Reserve to improve its anti-money laundering controls and other compliance procedures, as the bank has been persistently failing in paying heed to several pacts with U.S. regulators.
Further, this May, Bank of America (BAC - Free Report) agreed to pay a penalty of $75 million in order to settle an excessive fees probe. Last December, Mr. Cooper Group Inc. (COOP - Free Report) was charged a penalty of $28.6 million in order to settle legal probes with the Consumer Financial Protection Bureau regarding certain improper loan servicing practices committed between 2010 and 2015.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
National Australia Bank (NABZY) Faces Probe for Money Laundering
National Australia Bank Limited (NABZY - Free Report) might have to face higher compliance costs as it is being investigated for potential serious and ongoing anti-money laundering and counter-terrorism law breaches. Per the Australian Transaction Reports and Analysis Centre (“AUSTRAC”), the bank’s problems were “potential serious and ongoing non-compliance” with customer identification procedures, customer due diligence and other compliance requirements.
While the financial crime regulator felt that there were “areas of serious concern,” which needed further investigation, it did not consider a civil penalty order at this stage.
AUSTRAC stated, “AUSTRAC's concerns emanate from historical and contemporary compliance assessments. In particular, the seriousness of self-disclosed matters presented to AUSTRAC over a prolonged period combined with the accompanying closure rates is concerning.”
Notably, now the investigation will be handled by AUSTRAC’s enforcement team.
National Australia Bank is ready to cooperate with the regulator. Its chief executive officer, Ross McEwan, stated, “NAB has an important role in monitoring and reporting suspicious activity and keeping Australia’s financial system, our bank and our customers safe. We are very aware that we need to further improve our performance in relation to these matters. We have been working to improve and clearly have more to do.”
So far this year, shares of National Australia Bank have gained 22.9% compared with 23.4% growth recorded by the industry it belongs to.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Several banks continue to encounter legal probes and are charged with huge sums of money for business malpractice. Recently, Deutsche Bank AG (DB - Free Report) was privately reprimanded by the Federal Reserve to improve its anti-money laundering controls and other compliance procedures, as the bank has been persistently failing in paying heed to several pacts with U.S. regulators.
Further, this May, Bank of America (BAC - Free Report) agreed to pay a penalty of $75 million in order to settle an excessive fees probe. Last December, Mr. Cooper Group Inc. (COOP - Free Report) was charged a penalty of $28.6 million in order to settle legal probes with the Consumer Financial Protection Bureau regarding certain improper loan servicing practices committed between 2010 and 2015.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>