Westpac CEO to step down over money-laundering scandal
The chief executive of Australia’s second biggest bank plans to resign following accusations Westpac committed 23 million breaches of anti-money laundering and counterterrorism financing laws.
The financial crime regulator AUSTRAC is pursuing Westpac in the Federal Court for allegedly failing to report millions of international fund transfers including payments allegedly linked to child exploitation in Southeast Asia.
The bank’s CEO, Brian Hartzer, was given 12 months’ notice and will still get his $2.7 million Australian dollar salary ($1.83 million). He will forfeit unvested bonuses and is ineligible for future bonuses.
He is the third top executive from the country’s four major banks to depart in the past 18 months amid the scandal-plagued Australian banking sector.
Hartzer will be replaced by Westpac’s current CFO, Peter King, as of December 2.