Sydney (Reuters) - The head of Commonwealth Bank of Australia <CBA.AX> will not be subjected to an immediate public hearing over money-laundering charges facing the bank, a parliamentary committee said on Thursday.
CBA Chief Executive Ian Narev had been expected to face the committee, consisting of representatives of different political parties, as early as this week after the bank was accused of massive breaches of anti-money laundering and counter-terrorism laws.
Graphic: http://tmsnrt.rs/2w03qvi
But the House of Representatives Committee on Economics said it made the decision on the hearings after taking into account the views of financial intelligence agency AUSTRAC, which is in the midst of prosecuting the case.
The committee said Narev will appear before it on Oct. 20 as part of a regular set of hearings that the heads of Australia's "Big Four" banks are now subjected to under a government initiative to improve transparency in the sector.
CBA is defending the charges. The bank announced on Monday that Narev would retire by next June.
The top executives' testimony is now a regular ritual after the government last year said bank bosses would have to face a parliamentary committee at least once a year.
The heads of National Australia Bank's <NAB.AX>, Westpac Banking Corp <WBC.AX> and Australia and New Zealand Banking Group <ANZ.AX> also will face the committee in October, although CBA will be called last.
Representatives from the four banks did not immediately comment on the hearings.
"Banks welcome the opportunity to respond to issues of interest and discuss the substantial reform programme underway to strengthen trust in banks," said a spokeswoman at lobby group, the Australian Bankers' Association.
The committee was originally set up to ask bank bosses to explain the cost of funds, impacts on margins and the basis for interest rate pricing decisions, although it has since turned into a forum to discuss industry scandals involving misleading financial advice, insurance fraud and interest-rate rigging.
(Reporting by Paulina Duran and Jonathan Barrett in SYDNEY; Additional reporting by Colin Packham in CANBERRA; Editing by Kim Coghill)
