Westpac chief executive Brian Hartzer said he was "very sorry" and "disgusted and appalled".Credit:Louie Douvis
The allegations,which could lead to a record-breaking fine,were released in a lawsuit from the financial intelligence regulator AUSTRAC alleging"systemic non-compliance"by the bank.
“I am very sorry that this has happened and we will fix it. I will be personally leading our response to all of these issues,” Mr Hartzer said.
On the alleged failings in its vetting of customers who may be linked to child exploitation,he said:“Like everyone who has read the statement of claim,I am personally disgusted and appalled by the subject matter of some of these transactions."
The comments from Mr Hartzer came as financial markets braced for a hefty fine,amid some predictions the penalty could rival the $700 million penalty paid byCommonwealth Bank for its breaches in 2018,with one analyst estimating a penalty of up to $3.7 billion.
With the bank expected to seek a settlement,Mr Hartzer told journalists on Wednesday afternoon he agreed and accepted the case against the bank"almost overwhelmingly". However,he hit back at the regulator's claim of"indifference"by senior management,by arguing the bank had dramatically lifted spending on compliance,and several people involved had left the bank.
“There’s one thing that I do take issue with,and that is the suggestion that at least at a senior executive level or board level,that we have been indifferent,” he said.