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Heads roll on board of Australia's CBA amid money-laundering scandal

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Commonwealth Bank of Australia announced a major board reshuffle on Monday following allegations it allowed thousands of breaches of anti-money laundering a terror financing rules through its accounts.

[BENGALURU] Commonwealth Bank of Australia announced a major board reshuffle on Monday following allegations it allowed thousands of breaches of anti-money laundering a terror financing rules through its accounts.

Directors and audit committee members Launa Inman and Harrison Young would step down on Nov 16, while a third board member, Andrew Mohl, would leave after one more year in the job, Australia's biggest bank said in a statement.

Robert Whitfield had been appointed as an independent non-executive director of the board effective immediately.

CBA shares were down 1.5 per cent in morning trade, touching their lowest in nine months, compared with a 0.6 per cent dip on the Australian benchmark index.

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The bank confirmed on Friday that its internal reporting had flagged shortcomings in its monitoring of offshore transactions as early as February, well before Australia's financial intelligence agency launched a civil case against it on Aug 3.

The stock is down about 10 per cent since the AUSTRAC agency filed its suit alleging massive breaches of anti-money laundering and terror financing rules, wiping roughly A$14 billion (S$15.14 billion) off the company's market capitalisation.

The AUSTRAC case has triggered a landslide of bad news for CBA, with two other Australian regulators subsequently launching investigations and a law firm threatening to file a class action on behalf of shareholders.

REUTERS

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