• Christopher Hall

Westpac Vs AUSTRAC costs WBC CEO and Chairman's jobs.

The last five days have been tough for shareholders of Australia’s oldest bank , Westpac (WBC), with $7 billion taken off its market cap. This morning the CEO resigned effectively immidaley and chair to resign early next year. This comes after the bank received a statement of claim from AUSTRAC on Wednesday morning, 20th November 2019, notifying the bank that Austrac was commencing civil proceedings in relation to alleged contraventions of Westpac’s obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act. Hugh Dive from Atlas Funds Management has been following these developments closely and is here to guide us through. Most noteably, the media has made WBC's issues seem larger than those of Commonwealth Bank's (CBA) back in 2018. However, when looking into the details, as Dive explains, it would seem that while WBC has more transactions in question, there was less severity than the nature and oversight of CBA's issues. Jump Ahead: 3.40 AUSTRAC's role 4.30 Different to WBC vs AUSTRAC August 2018 5.10 Comparison to CBA 7.40 How does this pan out for WBC? 8.25 How much could the fine be? 9.25 AUSTRAC's new motto - 'Why not litigate?' 10.20 Will AUSTRAC dial down the pressure? 11.10 National Australian Bank (NAB) are also in AUSTRAC's cross-hairs 11.40 WBC's Response Plan 13.00 How will this impact the WBC Share Purchase Plan (SPP)? 14.25 How does this impact institutional investors? 15.20 WBC's next twist and turns in the road ahead

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