Bendigo and Adelaide Bank hired Deloitte to conduct the review after suspicious activity at one its branches apparently went undetected for six years, until August 1.Â
Deloitte found that the deficiencies extended beyond just one branch, identifying weaknesses in many key aspects of money laundering and counter-terrorism financing risk management, Bendigo and Adelaide Bank said on Tuesday.
The problems included the bank's approach to risk assessment, customer due diligence, oversight of money laundering and terrorism financing risks, its transaction monitoring program and its approach to customer risk rating.
Bendigo and Adelaide Bank's board said it was "very disappointed" with the findings and is committed to uplifting its systems and addressing all the deficiencies identified in the report.
The bank said it was engaging constructively with the regulatory agencies AUSTRAC, APRA and ASIC in relation to the matter.
AAP has contracted AUSTRAC, Australia's financial intelligence agency, for comment.
Other financial institutions have previously been fined for inadequate safeguards against money laundering, with Westpac paying a $1.3 billion penalty in 2020.
Bendigo and Adelaide Bank shares had slid 7.1 per cent to $10.22 in Tuesday morning trading.
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