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Compact case
Published by: International Institute for Management Development (IMD)
Originally published in: 2022
Version: 11.01.2022

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

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