The embattled Commonwealth Bank chief executive, Ian Narev, will be forced to appear at the next round of bank hearings in Canberra, as his bank continues to reel from allegations of money laundering.
The treasurer, Scott Morrison, has also met with the CBA chairwoman, Catherine Livingstone, to warn her that “all options” remain on the table to take action against CBA.
The Commonwealth Bank has axed senior executive bonuses in response to a scandal around money laundering and a lawsuit by Australia’s financial intelligence agency.
The Australian Transaction Reports and Analysis Centre (Austrac) launched civil proceedings against CBA in the federal court last week, over claims of “serious and systemic” violations of laws to combat funding for terrorism and crime syndicates.
Austrac claims to have unmasked more than 53,700 violations by CBA since 2012 of the Anti-Money Laundering and Counter-Terrorism Financing Act.
Most of the alleged violations concern late reports of large transactions through the bank’s “intelligent deposit machines” (IDMs), including by five people it assessed as possibly involved in terrorism or terrorism funding.
Austrac also alleged the bank repeatedly failed to take appropriate action on suspicious transactions worth more than $77m, despite internal red flags and warnings from police of suspected laundering of drug profits by criminal syndicates.
In response, CBA’s board said it would be axing senior executive bonuses, and cut board pay, ahead of its annual results presentation on Wednesday, amid calls for repercussions in senior ranks.
Morrison told parliament on Tuesday that the matter was “very, very serious”.
“I was briefed on this matter on Monday, by Austrac, in detail, and immediately I requested the chairman of the Commonwealth Bank to meet with me,” he said. “And I met with her earlier today to discuss the very serious issues with the Commonwealth Bank.
“At the same time, I have been taking advice from the key agencies and have spoken both to Apra and to Asic in relation to these issues, as well as taking advice from Treasury.
“I have made it very clear to the Commonwealth Bank that in relation to these matters the government’s response is prepared to consider all options, and that remains our view.”
A spokesperson for Morrison later told Guardian Australia that the meeting with Livingstone was “courteous” and “professional” but he would not clarify what was meant by “all options” being on the table.
Malcolm Turnbull told parliament that since Austrac had started legal proceedings against CBA, a royal commission into the banking industry – which is what Labor is calling for – would mean delaying or staying the legal proceedings.
“Austrac is on the case, doing its job,” he said. “It’s uncovered the wrongdoing and it’s pursuing it.”
The date of the next round of hearings has not been released publicly but Guardian Australia understands they may be held in October.
