Latest news with #CommonwealthBankofAustralia
Yahoo
3 days ago
- Business
- Yahoo
Commonwealth Bank controversy exposes $60 billion reason why you could get locked out of your account
Australians have been warned that if they don't comply with their bank's request for personal information, they could be blocked from accessing their accounts. That's what happened to Louis Christopher, who branded a Commonwealth Bank of Australia (CBA) request for information as "disgusting". A CBA spokesperson told Yahoo Finance the bank was following anti-money laundering legislation and the Know Your Customer policy, which is handed down by the Australian Transaction Reports and Analysis Centre (AUSTRAC). It's another slice of power financial institutions have in their arsenal to combat financial crimes, like money laundering, fraud or scams. Outside of freezing accounts to determine a person's funds are legitimate, the banks have also recently been scrutinised over their power to refuse cash withdrawal requests. If customers can't explain where the money is going, or if the bank determines there's a risk of scam, you could end up like Tim, who was stopped by Westpac from seizing a $6,500 cryptocurrency opportunity. Swinburne University Professor Steve Worthington told Yahoo Finance banks are caught between a rock and a hard place as they try to stop financial crime, and that sometimes customers won't agree with their methods. "You're damned if you do, and damned if you don't," Worthington said. Commonwealth Bank customer rages over threat to cut access to his money: 'Seven day deadline' Dad with no savings reveals surprising money message for struggling Aussies: 'Living pay to pay' Coles shopper 'stunned' after getting $50 item free due to little-known rule: 'Insane' Stopping scams and money laundering from happening is a no-brainer. Aussies lost a collective $2 billion to scams in 2024 (although thankfully that's a 25.9 per cent decrease from 2023). Similarly, the Australian Institute of Criminology estimated that serious and organised crime cost Australia up to $60.1 billion in 2021. Criminals are coming up with new ways to steal and launder money in this increasingly digital world, which they use to fund sex and drug trafficking, child exploitation, fraud, terrorism and other illicit activities. In order to prevent this scourge on the community, banks have to ask certain questions about your money, where it came from, and why it's being spent. Unfortunately, that leaves people furious because it seems invasive. A poll of more than 10,000 Yahoo Finance readers found 71 per cent felt banks have no right to ask you about your it comes to KYC requests, banks will ask you a range of questions to make sure their systems are as up to date as possible. It can be as simple as your name and address, or, in Christopher's situation, you can be asked to explain your "source of your money and your wealth". The 52-year-old SQM Research founder told Yahoo Finance that handing over that type of personal information left him worried. He's been with CBA for nearly 50 years and said there hasn't been anything "abnormal" recently that he felt warranted such a specific probe. "I regard that as a potential security threat to have that information out there on my family," he said. "I've been treated as a likely criminal if I don't provide this very, very personal information, and that's not on." CBA sent him an email in April and a follow-up in May, warning that if he didn't comply with the information request within seven days, he would be locked out of his account. He was told he also wouldn't be able to use his cards at ATMs, shops or online, and was told there would be "flow on consequences" for not acting fast enough. The SQM Research founder felt he was being unfairly singled out, even though he had done nothing wrong. However AUSTRAC told Yahoo Finance why everyday Aussies with no history of misdeeds might be asked for information like this. "Banks ask customers questions and ask them to provide verification so they can understand what a normal transaction looks like for their customers," a spokesperson said. Knowing what a regular transaction history looks like can help financial institutions spot ones that might be dodgy in other peoples' accounts. AUSTRAC said it doesn't prescribe what type of punishment to dish out for non-compliance in KYC requests, as that's up to each financial institution to decide. "AUSTRAC does not require banks to deny services, freeze or close customer accounts," a spokesperson told Yahoo Finance. "Banks need to know the money laundering risks posed by the services they provide and the customers they provide them to, and have processes to manage those risks." But, anti-money laundering legislation has a specific clause that grants financial institutions this power. The law states that banks are well within their rights to do the following until customers do eventually comply: refuse to continue to provide a designated service to the customer refuse to commence to provide a designated service to the customer restrict or limit the provision of a designated service to the customer Banks will also have terms and conditions that allow them to do this for cash withdrawals or movements of money, which customers agree to (whether every person reads those T&Cs is up to them). Commonwealth Bank was supported by the Australian Banking Association (ABA), which said this type of punishment was necessary to ensure KYC protocols are followed by customers. "Banks have strict obligations under Australia's anti-money laundering laws to verify customer identity and understand the nature of their financial activity," a spokesperson told Yahoo Finance. It said KYC isn't just for banks to stop money laundering, but also plays a "vital" role in protecting Aussies from fraud, scams and the use of accounts by money mule networks. Money mule networks are bank accounts used for illegal activities and serves, and act as an intermediary between the scammer and the illicit funds. Rather than having all the scammed money in one account, they can send it to multiple, both in Australia with different banks and overseas, to make it harder for authorities to track it down. "Banks are required to periodically confirm that KYC information is correct and are not permitted to continue to provide services when they are aware that information is out of date," the ABA spokesperson added. "This means that if a customer doesn't respond to repeated requests for information, banks may be legally required to restrict or close the account. "These checks are essential to protect customers and the financial system from fraud, scams and criminal misuse."
Sky News AU
5 days ago
- Business
- Sky News AU
'No amount of money' could have saved Healthscope during 2024 private health insurance attack, Rachel David declares
There was 'no amount of money' that could have saved Healthscope as it was waging war against private health insurers in 2024, a leader in the medical industry has declared. Healthscope was forced into receivership on Monday after the debt-laden hospital operator was handed from its Canadian owners Brookfield to its lenders earlier this month. Commonwealth Bank of Australia has issued the company a $100m lifeline to ensure all of Healthscope's hospitals will remain open and operate as usual. The collapse follows Healthscope launching an aggressive advertising campaign in 2024 to allege private health insurers were not paying their fair share to fund private hospitals. Private Healthcare Australia's CEO Rachel David on Tuesday hit back at Healthscope when questioned about the operator's campaign on Sky News' Business Now. 'There is no amount of money that health funds or the government could have thrown at Healthscope at that point which would have made up for the terrible business decisions made by Brookfield,' Ms David said on Tuesday. She singled out Healthscope's $5.7b sale, which was regarded as overvalued, in 2019 to Brookfield and the decision to sell 22 hospitals for $2.5b to foreign investors before leasing them back to the operator for high rents. 'In a situation like that, there is no amount of money that health funds could have put their hands on that would have resulted in a different outcome,' Ms David said. 'We have to be mindful that … consumers have got to be able to afford their premiums. 'The advertising campaign was a misstep, but now that we're in a situation where new owners can take over ... myself and the private health insurance industry is incredibly optimistic that the private hospital sector will come through this and be able to deliver much more modern and attractive models of care for our patients.' Healthscope faced troubles during the pandemic when patients halted their elective surgeries, leading to major downturns for private hospitals. The uptick in at-home treatment, which was bolstered by private health insurers, also came as a sting to Healthscope as lengthy hospital visits became less necessary. The company has also been marred with controversies, including the death of a two-year-old boy last September, a cancer patient having the wrong side of his colon removed in 2019 and the death of a 17-year-old boy suffering from anaphylaxis in 2021. Healthscope's CEO Tino La Spina told reporters on Monday he is confident there will be a buyer to take over the business. 'I think we're confident that there is interest in taking the Healthscope business as a whole. We have 10 non-binding indicative offers,' Mr La Spina said. 'Some are for the whole (business) and others potentially could include the whole (business) under certain circumstances. That is the focus.' Health Minister Mark Butler said Labor will not bail out the embattled healthcare company amid its financial troubles. 'We remain steadfast in our view that an orderly sales process that maintains the integrity of the entire hospital group will provide the best outcome for patients, staff, landlords and lenders,' Mr Butler said. However, he did stress the hospitals operated by Healthscope 'remain a critical part of our healthcare system'. 'The government does not want any of these important assets to be put in jeopardy to satisfy international investors,' Mr Butler said.
Finextra
5 days ago
- Business
- Finextra
Westpac appoints chief data, digital and AI officer from Commbank
Westpac has announced the appointment of Dr Andrew McMullan as Chief Data, Digital and AI Officer, reporting to CEO Anthony Miller. 0 Dr McMullan joins Westpac from the Commonwealth Bank of Australia, where he most recently served as Chief Data and Analytics Officer. In this new role, Dr McMullan will lead Westpac's data analytics, digital transformation and artificial intelligence initiatives, with a strong focus on the responsible use of data and AI to deliver exceptional experiences for customers and employees. 'Andrew's appointment will accelerate our strategic efforts in data analytics, digital innovation and responsible AI,' said Westpac CEO Anthony Miller. 'He's an outstanding executive and thought leader who has successfully transformed data and digital capabilities in leading financial institutions globally. By integrating our data, digital and AI functions under Andrew's leadership, we aim to become a truly service-centric organisation, improving the customer experience and empowering our teams.' 'Andrew will build on the strong foundations established over the past five years by our CIO Scott Collary. He will work closely with Scott and our executive team as we continue to responsibly leverage data to enrich the customer and employee experience. Andrew's leadership will also be instrumental in supporting the successful delivery of UNITE.' 'I look forward to welcoming Andrew to our executive team,' Mr Miller said. Dr McMullan holds a PhD in Statistics from the University of Glasgow and brings extensive global experience in developing and scaling digital, data analytics and AI platforms. Throughout his career, he has focused on responsibly leveraging data and AI to enhance the financial wellbeing and overall experiences of customers, communities and employees. Dr McMullan will join Westpac in September 2025.
Mint
5 days ago
- Business
- Mint
Iron Ore Retreats as Traders Stay Cautious on Demand Outlook
(Bloomberg) -- Iron ore extended its losing streak for a fourth day as traders remained cautious about demand and assessed moves to limit overcapacity in China's steel sector. The steel-making material dropped to a three-week low as industry players, gathered at the annual Singapore International Ferrous Week, weighed expectations for production cuts at Chinese mills. Meanwhile, daily ore flows from Brazil increased from the month before. China's steel industry needs to control capacity expansion to solve the ongoing supply-demand mismatch, Tang Zujun, vice president of the China Iron and Steel Association, said at the Singapore event on Tuesday. Another focus is consolidation in the domestic industry, as it's 'relatively scattered' with about 40% of capacity concentrated in the top ten companies, he added. The industry body said this month the government was 'actively deploying and promoting' its crude steel production mandate. China's steel market — the world's largest — has been grappling with a massive glut and weak profitability at mills. The immediate outlook on China's steel-consuming economy has 'improved' thanks to a detente in the trade war between the US and China, according to Vivek Dhar, an analyst at Commonwealth Bank of Australia. 'But it's hard to see the property or infrastructure sectors recovering meaningfully without policy support' in the form of economic stimulus, which he said is likely to come in the second half of the year. Iron ore futures in Singapore slipped 1.3% to $95.80 a ton as of 11:45 p.m. local time. Steel rebar contracts in Shanghai traded at the lowest since June 2017. More stories like this are available on
The Star
5 days ago
- Business
- The Star
Asian shares start cautiously, dollar edges down
NEW YORK: Asian shares had a cautious open Tuesday (May 27) as investors awaited fresh trade news that may define the appetite for US assets. The MSCI Asia Pacific Index opened flat with marginal declines in Japan and South Korea. The dollar edged down in early Asian trade with a gauge of the greenback's strength hovering near its lowest level in almost two years on weak demand for US assets. The yield on the ten-year US Treasury fell two basis points while yields on Japan's 40-year sovereign slumped ahead of a bond auction. Contracts for the S&P 500 and Nasdaq 100 jumped over one per cent, holding their gains from a Monday holiday, after the European Union agreed to accelerate trade negotiations with the US. Tariff headlines are once again dominating the market and investors are closely watching how President Donald Trump's administration is dealing with Japan and India after talks with China earlier this month boosted optimism. Trade tensions and concerns of US fiscal position has weakened demand for US assets and are showing up the most in the dollar. "Any further tariff news could inject more volatility into currency markets and pull the dollar down,' Kristina Clifton, a senior economist and currency strategist at Commonwealth Bank of Australia wrote in note. Bloomberg's dollar spot index was track for its lowest close since July 2023, while the greenback is at or approaching key levels against a host of currencies including the euro, British pound, yen and Swiss franc. In Japan, yields on Japanese super-long bonds fell ahead of an auction Wednesday that is expected to test demand following a recent sale that sent jitters through global markets. Yields on 40-year and 30-year maturities slid ten basis points in Tokyo on Tuesday, adding to drops in recent days. These moves followed sharp gains in yields to record highs last week. Elsewhere, China's central bank asked its major lenders to raise the share of yuan when facilitating cross-border trade, in its latest push for the use of the currency as the world grapples with the onslaught of tariffs by the US. Trump's plan to bring more factories back to the US has President Xi Jinping's government also considering options to boost production of high-end technological goods. There will be close attention on the nation's electric vehicle sector, after BYD Co. introduced sweeping price cuts. Shares of China's No. 1 selling car brand tumbled 8.6 per cent in Hong Kong on Monday, sending shares of peers Li Auto Inc., Great Wall Motor Co. and Geely Automobile Holdings Ltd. also down amid investor concern about intensifying competition in the sector. A key event this week will be Nvidia Corp.'s results on Wednesday. The chip-making giant is seen as a bellwether for so called growth stocks and the sustainability of the artificial intelligence boom. Its outlook will be crucial given macro risks and tariff uncertainty. Investors are also gearing up for the Federal Reserve's preferred inflation measure, the US personal consumption expenditures price index excluding food and energy, which will be released Friday. The April reading is forecast to rise 0.1 per cent based on consensus expectations. In commodities, oil slipped on Tuesday after fluctuating in the previous session as the market weighed easing trade tensions against the outlook for rising OPEC+ supply. Gold traded steady. - Bloomberg
