BFCSA Blog

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form
  CBA says “software error”. Insider says “no one gave a rat’s arse”   A Commonwealth Bank insider has rejected the bank’s claims that a “software error” caused its systematic money-laundering. Rather, it was due to management incompetence and a culture in which compliance ran a poor second to profit. The person, who does not wish to be identified, said bank executives were warned about system problems involving the the interface with AUSTRAC but said, “No one gave a rat’s arse”. “Compliance always comes last in CBA and it is frequently and quietly dropped, overlooked and omitted,” said the person. “As for this “software error” … haha”. In response to questions from michaelwest.com.au, a CBA spokesman said: We’re currently reviewing the statement of claim. “All of our statements in relation to the matter are available here – https://www.commbank.com.au/personal/newsroom.html “We can’t offer any additional information at this time.”   CBA, which handed...
Last modified on
Hits: 100 0 Comments
Rate this blog entry:
Continue reading
  Sydney Morning Herald August 12 2017 - 1:49am Adele Ferguson   There is hardly a senior figure in Australia that hasn't put the boot into the Commonwealth Bank – and the banking sector – in the past week for cultivating a culture of profit at all costs. The latest was the Reserve Bank governor Philip Lowe who used a Senate economics committee in Melbourne to rip into the banks for a short-term profit mindset and cultural collapse. "The desire for short-term profit has meant not enough attention is being paid to risk management, trust has been strained, banks know that," he said. At the same time, in a separate parliamentary committee held in Sydney, Australian Securities and Investments Commission chairman Greg Medcraft was doing likewise, talking about the importance of culture and trust. "If the culture and values of a business are not aligned with customer outcomes, it is easy...
Last modified on
Hits: 147 0 Comments
Rate this blog entry:
Continue reading
Era of Chinese exuberance over as Beijing brings dealmakers into line Australian Financial Review Aug 11 2017 11:00 PM Lisa Murray, Angus Grigg   Just 10 minutes after looking over an industrial site in the inner Sydney suburb of Erskineville, Chinese billionaire Feng Di was ready to make an offer. Over coffee at a nearby cafe, Feng put his opening bid down on paper, or on the back of a napkin to be more precise. "He didn't speak much English so he just wrote the number down and let me tell you it had a lot of zeros on the end," said one person familiar with the event. That opening offer in late 2014 would eventually lead to a $380 million signed contract by Feng's Golden Horse Group for what was then the largest urban land deal in Australian history. Over the next few years, a spate of deal-making by cashed-up...
Last modified on
Hits: 120 0 Comments
Rate this blog entry:
0
Continue reading
Property is AUSTRAC's money-laundering blindspot Australian Financial Review Aug 11 2017 10:00 PM Duncan Hughes   A loophole for laundering vast amounts of cash into the nation's property market has been exposed by the Commonwealth Bank of Australia's money laundering scandal, according to security experts. Stolen identities and illicit bank accounts used in the CBA scam to transfer money out of Australia are also the hallmarks of a sophisticated global network used to launder huge amounts into residential and commercial real estate, they claim. The CBA action is also revealing regulators deep reliance on banks for intelligence on transfers of large amounts of money between accounts, which can result in cash transactions going unnoticed, they claim. George Brandis, federal attorney-general, is expected to make an "imminent" announcement about boosting powers and resources of Austrac, the government agency that combats money laundering, according to a department spokesman. But it is expected to...
Last modified on
Hits: 155 0 Comments
Rate this blog entry:
Continue reading
AUSTRAC case: How drug syndicates turned Commonwealth Bank into a money pump Australian Financial ReviewAug 11 2017 11:00 PM Neil Chenoweth   One man with a car was laundering more than $650,000 a day on a meandering route through Commonwealth Bank branches in 2015, part of $1.5 million that drug syndicates were moving through CBA accounts each day. Transaction details in the 583-page statement of claim lodged by AUSTRAC against CBA last week for failing to report suspicious transactions provide almost a minute by minute account of how six syndicates manipulated the CBA deposit system, reaching its height on June 30, 2015. The most graphic account came just after one o'clock that day when a computer alert pinged and a CBA manager hurried outside to catch a glimpse of the man who had haunted his branch for months. CBA customers had been shovelling huge sums of cash through the Intelligent Deposit...
Last modified on
Hits: 166 0 Comments
Rate this blog entry:
0
Continue reading
Brokers on board as ANZ Banking Group readies $1b hybrid Australian Financial Review Aug 11 2017 12:15 AM Sarah Thompson, Anthony Macdonald, Joyce Moullakis   STREET TALK  It's down to the fine strokes as ANZ Banking Group prepares a return to the hybrid market next week.  Street Talk understands ANZ has six brokers lined up to handle the $1 billion-odd capital note offer, which is due to launch mid next week after the bank presents its third quarter earnings update. ANZ's internal team is expected to lead the offer, and draw on JPMorgan, Morgan Stanley, Morgans, UBS, Westpac Institutional Bank and their retail affiliates to help sell the securities. Interestingly, that would be almost the same line up that ANZ called on this time last year when the bank raised $1.3 billion for its ANZ Capital Notes 4 at 4.7 per cent above the bank bill swap rate. The only difference...
Last modified on
Hits: 152 0 Comments
Rate this blog entry:
0
Continue reading
Commonwealth Bank's missteps in the sights of Hong Kong Monetary Authority Australian Financial Review Aug 11 2017 12:15 AM Sarah Thompson, Anthony Macdonald, Joyce Moullakis   STREET TALK  Commonwealth Bank of Australia's compliance failures around money laundering and criminal activities have the Hong Kong Monetary Authority on high alert, with that government authority weighing its own course of action. Street Talk understands HKMA, which is a government authority responsible for maintaining monetary and banking stability, is conducting its own review of AUSTRAC's explosive claims, and may opt to take the matter further including its own fines levelled at CBA. HKMA's jurisdiction does appear to cover fines for bank's headquartered elsewhere. Earlier this year, it ordered the local branch of private bank Coutts & Co to pay a fine for breaching anti-money laundering and counter-terrorist rules and in 2015 State Bank of India's Hong Kong branch was hit with a penalty. Interestingly,...
Last modified on
Hits: 109 0 Comments
Rate this blog entry:
0
Continue reading
CBA branch laundered $27.2 million for criminal drug gang, court told The Australian 12:00am August 11, 2017 Nicola Berkovic   Members of a criminal gang involved with the manufacture and importation of liquid methamphetamine would deliver bags of cash to a fake business at the Lemon Grove Shopping Centre in Chatswood, on Sydney’s north shore, and get “receipts” for meat, including “mutton leg”, “lamb leg bones” and “tongue long cut”. “Staff members” of the fake business, known in court documents as Company 1, would then take the bags and deposit the cash into its account at the CBA’s Chatswood branch. On one occasion $527,900 was lugged to the bank in a black and blue sports bag. Another time $529,900 was loaded into a blue Aldi shopping bag. Chinese man Jizhang Lu, jailed for a maximum of two years, delivered $3.2 million over a period of just under three weeks. In total,...
Last modified on
Hits: 204 0 Comments
Rate this blog entry:
0
Continue reading
ASIC may pursue case alleging Commonwealth Bank directors breached duties Australian Financial ReviewAug 10 2017 11:45 PM Anne Hyland   EXCLUSIVE  The Australian Securities and Investments Commission is considering pursuing a case against Commonwealth Bank of Australia directors that would allege they breached their duties to protect the company's reputation when responding to AUSTRAC warnings the institution was being used for money laundering. ASIC declined to comment. However, it is expected outgoing ASIC chairman Greg Medcraft will focus on this issue when he fronts a parliamentary joint committee on corporations and financial services in Sydney today. There is intense political interest in the allegations raised in a court case by financial intelligence agency AUSTRAC that CBA breached anti-money laundering rules more than 53,000 times by failing to disclose transactions of more than $10,000. CBA chairman Catherine Livingstone was summoned to Canberra on Tuesday for meetings where she was told the federal...
Last modified on
Hits: 162 0 Comments
Rate this blog entry:
0
Continue reading
Comm Bank scandal: what happens when too much power is placed in too few hands Tom Westland Wednesday 9 August 2017 https://www.theguardian.com/commentisfree/2017/aug/09/comm-bank-scandal-what-happens-when-too-much-power-is-placed-in-too-few-hands  It is generally considered poor taste to kick someone while they’re down. In the case of Commonwealth Bank CEO Ian Narev, I think an exception can and should be made Narev is the extraordinarily well-paid executive of an extraordinarily profitable bank that has this week been accused of having forgotten – on 53,506 separate occasions – to notify regulators of large cash transactions.   The bank was required to make these notifications by law; apparently a computer coding error prevented CBA from doing so. This cock-up, regulators allege, meant that criminal syndicates were able to feed large amounts of dirty cash into the bank’s ATMs anonymously and deposit it, suitably laundered, into offshore accounts.  The bank is currently retailing the idea that although they broke the law 50,000 times,...
Last modified on
Recent comment in this post - Show all comments
  • Consent_Withdrawn
    Consent_Withdrawn says #
    The business rationale is really quite animalistic isn't it! Everything about it is either counterintuitive or completely cockeye
Hits: 143 1 Comment
Rate this blog entry:
Continue reading
Confidence in CBA’s ‘Ian Narev’ is a hollow cliché Adele Ferguson 8 August 2017-08-09 http://www.smh.com.au/business/banking-and-finance/confidence-in-cbas-ian-narev-is-a-hollow-cliche-20170808-gxrua4.html In the sporting world, the expression "having the full support of the board" has become such a cliche it has even made it into the Urban Dictionary. The definition is: "Something that a football club's board will say to the media about their coach two to four weeks before firing him." It can also be applied to companies. Take Uber boss Travis Kalanick, who resigned amid a firestorm shortly after the board's Arianna Huffington told the media "the board has confidence in Travis". Ditto for the boss of BP in 2010 and Yahoo's chief executive in 2011 who was sacked by phone within weeks of the board supporting her. CBA boss Ian Narev will be hoping his board's public expression of "confidence" is not consistent with the Urban Dictionary's meaning of the term. However, four to...
Last modified on
Recent Comments - Show all comments
  • Consent_Withdrawn
    Consent_Withdrawn says #
    ...and a few cases of Penfold's Grange thrown in with it!
  • Consent_Withdrawn
    Consent_Withdrawn says #
    In this case I wonder which definition of confidence is in play. My guess would be that it's a case of the clandestine variety.
Hits: 99 2 Comments
Rate this blog entry:
Continue reading
That whoosh? It's the Great Chinese Property Pullback Sydney Morning Herald August 8 2017 - 10:03am Nisha Gopalan Nisha Gopalan is a Bloomberg Gadfly columnist covering deals and banking.   That whoosh you just heard? It's Chinese money pulling back from property in London to Sydney to New York. Capital centres globally should brace for tumbling real-estate prices as Beijing manages to do what Brexit and higher interest rates haven't. Reflecting tighter regulations, China overseas direct property investment could drop 84 per cent to $US1.7 billion ($2.15 billion) this year and about another 15 per cent to $US1.4 billion in 2018, according to Morgan Stanley. Mainland money began piling into offshore commercial property in 2013. Land prices were expensive at home, and investors wanted to find a hedge against a weakening yuan. Another draw was the prospect of higher returns in cities such as Sydney where yield spreads - the difference...
Last modified on
Hits: 83 0 Comments
Rate this blog entry:
Continue reading
Westpac, ANZ linked to money laundering rings in Commonwealth Bank case Australian Financial Review Aug 8 2017 11:30 PM Neil Chenoweth   At least half of the six money-laundering syndicates identified in AUSTRAC's statement of claim against the Commonwealth Bank of Australia used other banks including ANZ and Westpac to wash major portions of their funds. The banks are not identified in the AUSTRAC claim, but CBA is expected to seek details through court discovery, and to query whether the rival banks made sufficient disclosure of the suspect trading. CBA chief executive Ian Narev raised comparisons with other banks on Sunday when he told The Australian Financial Review: " You know any CEO of a major bank anywhere in the world who says they definitely don't have any problems with financial claims compliance would be a very bold CEO". Both Westpac and ANZ told the Financial Review on Tuesday that while...
Last modified on
Hits: 178 0 Comments
Rate this blog entry:
Continue reading
Commonwealth Bank may face NZ money laundering problems Australian Financial Review Aug 8 2017 10:30 PM Patrick Durkin  Australian banks have been wrecking New Zealander’s lives with toxic Interest Only Mortgages and Loan App Fraud since 1996.  BFCSA Members in NZ sent us the evidence years ago.   The Commonwealth Bank faces questions from anti-money laundering regulators in New Zealand, after revelations that CBA's New Zealand subsidiary ASB Bank is under scrutiny over the use of its smart ATM machines similar to those exploited by criminals in Australia. The CBA-owned ASB Bank rolled out a network of smart ATMs in December 2013 which allow its customers to deposit under $10,000 without any identification. The ATMs operate 24/7 and allow customers to deposit cash instantly into their bank accounts, including on weekends and public holidays. The customers can then transfer funds into other accounts and move them to other financial institution or...
Last modified on
Hits: 118 0 Comments
Rate this blog entry:
0
Continue reading
Scott Morrison warns Commonwealth Bank over money laundering scandal Australian Financial ReviewAug 8 2017 11:45 PM James Frost, Andrew Tillett, Sally Patten, James Eyers Former Banker for Goldman Sachs Prime Minister Turnbull is will continue to deny the people a Royal Commission into Banking to protect the Bankers Party  Treasurer Scott Morrison has warned Commonwealth Bank of Australia chair Catherine Livingstone that the government is prepared to "consider all options" when it comes to further action against the bank over allegations it breached anti-money-laundering rules more than 53,000 times. He issued the warning to Ms Livingstone, who was summoned to a face-to-face meeting in Canberra on Tuesday, and revealed he had taken advice from Treasury, the Australian Prudential Regulation Authority and the Australian Securities and Investment Commission over the case being taken br AUSTRAC against CBA. "The matter that AUSTRAC is pursuing in the courts with the Commonwealth Bank of Australia...
Last modified on
Hits: 160 0 Comments
Rate this blog entry:
0
Continue reading
All money passes through banks whoever it might belong or not belong to so what’s the big deal?  The real issue being covered up is NOT erroneous coding in bank gaming machines but coding issues in bank LAF processing software!   One of the Largest Banks in the World Just Accused of Laundering Millions for Drug Cartels Commonwealth Bank is in hot water, as civil penalties proceedings begin after an investigation found tens of thousands of violations of money laundering and terrorist financing laws. By Claire Bernish   August 3, 2017 http://thefreethoughtproject.com/bank-laundering-money-drug-cartels/   One of the Largest Banks in the World Just Accused of Laundering Millions for Drug Cartels Commonwealth Bank is in hot water, as civil penalties proceedings begin after an investigation found tens of thousands of violations of money laundering and terrorist financing laws. By Claire Bernish   August 3, 2017   http://thefreethoughtproject.com/bank-laundering-money-drug-cartels/   Commonwealth Bank of Australia stands...
Last modified on
Recent comment in this post - Show all comments
  • Consent_Withdrawn
    Consent_Withdrawn says #
    The world can no longer afford an outdated and exploitative finance model. Time for the government to get out of the eighteenth c
Hits: 158 1 Comment
Rate this blog entry:
Continue reading
China regulator targets big spenders overseas, anything over $187 to be reported Australian Financial Review Aug 7 2017 11:30 PM Lisa Murray  China waking up to Bad banks here in Oz spruiking Chinese Mums and Dads living in Shanghai and placing them in danger with IO equity stealing Loans.   China's foreign exchange regulator is tightening its scrutiny of overseas bank withdrawals, with a new requirement for daily reports on any transactions worth more than 1000 yuan ($187). The State Administration of Foreign Exchange issued a new ruling on Thursday requiring all banks to report their transactions above 1000 yuan within 24 hours, starting from August 21. It is the latest measure from Beijing aimed at monitoring and controlling capital outflows after China was rocked by record levels of money leaving the country in 2016. Outflows have since moderated as China's government introduced new restrictions and strengthened its foreign exchange controls....
Last modified on
Hits: 101 0 Comments
Rate this blog entry:
0
Continue reading
Michael Keenan to move on money launder laws The Australian 12:00am August 8, 2017 Joe Kelly   The government will introduce legislation within weeks to ­strengthen laws against money laundering and terror financing after the Commonwealth Bank was accused of breaching existing rules more than 53,000 times in three years. The overhaul follows a long consultation period with industry. The government tabled a statutory review of Australia’s anti-money laundering arrangements in April last year, containing 84 recommendations. Government sources confirmed last night that Justice Minister Michael Keenan was aiming to introduce the first tranche of recommendations from the ­review as soon as next week, as Liberal MPs yesterday accused the CBA of appearing to “operate above the law”. The Australian can reveal the government’s legislation will look at closing regulatory gaps in order to capture digital currencies such as Bitcoin, and strengthen the ­reporting regime for cash and travellers cheques at...
Last modified on
Hits: 88 0 Comments
Rate this blog entry:
0
Continue reading
HSBC probe may have prompted Austrac concerns about CBA transactions The Australian 6:22pm August 7, 2017 Leo Shanahan Sky News business reporter Austrac’s respected former chief executive Paul Jevtovic — also a former boss of the Australian Crime Commission — left the regulator to join HSBC in April this year as its head of financial crime based in Hong Kong.   HSBC Australia could have played a crucial role in tipping off Australian and US authorities into alleged money laundering by organised crime gangs worth hundreds of millions of dollars to Hong Kong accounts. As CBA awaits any global fallout from its alleged facilitation in the money laundering of hundreds of millions of dollars to organised crime and terrorist organisations, the matter is understood to already be on the radar of US authorities after HSBC raised CBA transactions with Australian regulator Austrac as part of an investigation by American authorities into...
Last modified on
Hits: 138 0 Comments
Rate this blog entry:
Continue reading
Commonwealth Bank money-laundering drama is overblown Australian Financial ReviewAug 7 2017 4:15 PM Christopher Joye   On Monday CBA's stock price bounced back for good reason: the hysterical reaction to an isolated 2012 coding error that resulted in 53,000 delayed money laundering reports has been massively overblown. CBA is not going to pay a business-threatening fine, its outstanding chief executive Ian Narev will not lose his job, and the bank does not remotely have any cyber-security or financial crimes culture problems. Quite the contrary. If you speak to senior government security and intelligence officials, they will tell you that there is no better resourced or committed business in Australia than CBA when it comes to combating cyber-crime, fraud and information security threats. No Australian business spends more money on, or has more people and technology resources dedicated to, thwarting financial crime, including money laundering. And no business burns as much cash...
Last modified on
Hits: 153 0 Comments
Rate this blog entry:
Continue reading