Subject category:
Finance, Accounting and Control
Published by:
International Institute for Management Development (IMD)
Version: 11.01.2022
Length: 5 pages
Data source: Published sources
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https://casecent.re/p/183461
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Abstract
When Commonwealth Bank of Australia (CBA) installed intelligent deposit machines (IDMs) it did so to make banking more convenient and save time for customers. Cash deposited was counted automatically and instantly available for domestic or international transfer from the customers' account. It was no wonder the IDMs became very popular with small businesses. But criminals liked them too: terrorists and organized crime syndicates laundered millions through the IDMs. The scandal led to the largest civil penalty of in Australian corporate history at the time. The bank paid a record AUD700 million fine and acknowledged deficiencies in oversight, accountabilities and resources as regards anti-money laundering/counter terrorism financing compliance and risk management.
Time period
The events covered by this case took place in 2012-2017.Geographical setting
Region:
World/global
Featured company
Commonwealth Bank of Australia
Employees:
10000+
Turnover:
USD 24.4 billion
Industry:
Banking
About
Abstract
When Commonwealth Bank of Australia (CBA) installed intelligent deposit machines (IDMs) it did so to make banking more convenient and save time for customers. Cash deposited was counted automatically and instantly available for domestic or international transfer from the customers' account. It was no wonder the IDMs became very popular with small businesses. But criminals liked them too: terrorists and organized crime syndicates laundered millions through the IDMs. The scandal led to the largest civil penalty of in Australian corporate history at the time. The bank paid a record AUD700 million fine and acknowledged deficiencies in oversight, accountabilities and resources as regards anti-money laundering/counter terrorism financing compliance and risk management.
Settings
Time period
The events covered by this case took place in 2012-2017.Geographical setting
Region:
World/global
Featured company
Commonwealth Bank of Australia
Employees:
10000+
Turnover:
USD 24.4 billion
Industry:
Banking