Financial crime doesn’t pay – three ways in which wrongdoers may soon be hit in the pocket
Previously, we discussed some core areas where financial professionals need to think about their own compliance, including compliance with the law and professional obligations. What exactly will happen though, to people and organisations that are in serious breach of their obligations? Recent cases suggest that regulatory agencies and the courts will deal severely with serious non-compliance. For example, in March the Federal Court agreed that Tabcorp would be required to pay a $45 million civil penalty for breaches of anti-money laundering and counter-terrorism financing laws. Referring to this case, the CEO of the Australian Transaction Reports and Analysis Centre (AUSTRAC), Paul Jevtovic commented: “There was a serious failure in the corporate governance and the size of the penalty reflects a significant and extensive non-compliance”. A take-home message, perhaps, is that…