“Calls for blood over Westpac money laundering and child exploitation scandal”, 25 November 2019

Westpac is facing growing calls to sack its CEO over allegations it failed to act on customers using its services to purchase child abuse material. [But]…Brian Hartzer is being given the benefit of the doubt by the board…because it currently has no information that shows he knew his bank took 18 months to act on millions of suspicious transactions,…some of which are alleged to be linked to child exploitation in South-East Asia.

…Mr Hartzer said “the issue of personal accountability is absolutely on the table” but said the first time he saw the “specific customer matters that are in the detailed statement of claim” was that morning…“I was utterly horrified…and am absolutely determined to get to the bottom of why…this was allowed to persist…”. The payments are alleged to have been made through Westpac’s LitePay system, which was launched in 2016…

…Mr Maxsted stood by his CEO but flagged he could be shown the door “if there isn’t investor support…”. On Sunday, Westpac announced it would scrap or trim the bonuses of its executive team in response to the allegations.

…Mr Frydenberg [(Treasurer)] said: “History shows you that these issues build a momentum…our position has consistently been, decisions about who are on boards…are matters for boards. That being said, these are very serious issues. There must be accountability”.

Westpac…released a statement outlining its response…to AUSTRAC’s legal action, with Mr Maxsted saying the bank was “determined to urgently fix (the) issues…[w]e accept that we have fallen short of both our own and regulators’ standards and are determined to get all the facts and assess accountability”. Mr Maxsted and Mr Hartzer said the bank’s response would focus on…closing LitePay, lifting standards through priority screening and improving cross-industry data sharing and protecting people by investing in reducing the human impact of financial crime.

Opposition leader Anthony Albanese [said]: “The buck does stop with the CEO and with the board and up to now frankly the response has been completely inadequate” …