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Money laundering scandal has cost this bank CEO his job
Brian Hartzer, CEO of Westpac, has been asked to step down on December 2nd, 2019, over issues regarding a money-laundering scandal.
Brian Hartzer, CEO of an Australian Bank, Westpac, has been asked to step down on December 2nd, 2019, over issues regarding a money-laundering scandal, according to the Punch.
Australia’s Federal Court, along with the country’s financial intelligence agency, AUSTRAC alleged that Westpac breached anti-money laundering and terrorist financing obligations.
The Crime: Westpac was accused of breaching the law 23 times, as well as failure on their part to scrutinize international transactions that allegedly involved sending money to child pornography operations overseas.
As a result, Hartzer was identified as the first executive to take the fall. He would be resigning next month with a full salary of 2.7 million dollars (1.8 million U.S. dollars) for 2020 but would be denied his 2019 bonuses.
Ripple effect: Two top bank officials would be sanctioned as well. Chairman of Westpac, Lindsay Maxsted was advised to extend his retirement to early 2020 and Ewen Crouch, re-election bid withdrawn.
“As was appropriate, we sought feedback from our stakeholders, including shareholders, and having done so it became clear that the board and management changes were in the best interest of the bank,” Maxsted said.
[READ MORE: How is eTranzact faring one year after its 2018 fraud scandal?]
The Bank’s fate is still left for the courts to decide. The penalty for failing to monitor the transaction could range between $17 million and $21 million per breach.
About Westpac: Westpac Banking Corporation, commonly known as Westpac, is an Australian bank and financial services provider headquartered at Westpac Place in Sydney. It was established in 1817 as the Bank of New South Wales and on May 4, 1982 merged with the Commercial Bank of Australia (founded in 1866), becoming the Westpac Banking Corporation in October the same year. It is one of Australia’s “big four” banks and is Australia’s first and oldest banking institution. Its name is a portmanteau of “Western” and “Pacific”.
Around the World
Chad’s President Deby dies of injuries suffered on the frontlines, as son takes over
The President had visited the frontlines to share his election victory with the soldiers before the unfortunate incident.
Around the World
Elon Musk loses an estimated $6bn after a Tesla car accident killed two people
Elon Musk’s net worth dipped by $6 billion following a tragic Tesla car accident that killed two people.
The second richest man in the world, Elon Musk, witnessed his wealth shed an estimated $6bn after a Tesla car was involved in an accident that led to the death of two people.
Tesla stocks dropped by 3.8% after the news of the crash went mainstream. The resultant effect on Elon Musk’s wealth was a $5.71bn loss in a single day.
READ: Google threatens to remove its search engine from Australia due to media code
The Accident
Two men lost their lives on Saturday night in Houston when their 2019 Tesla model car slammed into a tree. Police authorities on sight claimed the car might have been on autopilot due to the sitting position of the corpses.
They also struggled to put out the fire from the Tesla car and even called Tesla for help. The death of the two men has sparked a heated argument between Tesla and its critics. Autopilot or not?
Although police officers’ assertion that the car may have been on autopilot remains unconfirmed, it has raised serious uncertainty about the safety of Tesla’s autopilot feature and Tesla’s critics are not backing down on this.
READ: Dealers explain why ‘Tokunbo’ Cars are expensive
Elon Musk reacts
Elon Musk has reacted to the news, insisting that the autopilot feature in the crashed vehicle was not enabled. According to him, the Wall Street Journal’s coverage of the accident was not professional.
READ: Meet the 39 years old Chinese billionaire electric car maker
What you should know
Elon Musk is now worth $183bn following the recent drop. He closed the gap on Amazon’s Jeff Bezos to $4bn early last week. The gap has widened to $14bn today.
