Former NAB chief executive Don Argus,who led the bank from 1991 to 1999,said employing staff on casual contracts was not a problem for banks if they ensured these workers received formal and thorough training. “I don’t have a problem with casualisation providing that they train their people,” Mr Argus said. “If you put untrained people in any business,you will get a bum outcome.”
However,many former casual NAB workers said they received little or no formal training when they joined the bank’s financial crime team through Hays. “It was just like sitting beside someone and listening into their calls,” said one source. “They sort of just chucked me into it.”
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The Australian Transaction Reports and Analysis Centre (AUSTRAC) sent a letter to NAB last Friday disclosing it had escalated an investigation into potential serious and ongoing non-compliance with anti-money laundering (AML) laws.
While NAB is currently not expected to face financial penalities from AUSTRAC,analysts have warned that it will likely face higher costs as it fixes its compliance issues.
Banks are fiercely competing for talent skilled in compliance roles as money laundering scandals rip through the industry. Westpac was hit with a record $1.3 billion fine by AUSTRAC last year after its failure to comply with money laundering laws. Commonwealth Bank was hit with a $700 million fine in 2018.
While it is not unusual for major banks to use third parties to assist with hiring sprees for major projects,it is less common in sensitive areas such as financial crimes departments. ANZ and Westpac both confirmed they do not use casuals or third party contractors in these areas.