US class actions pile up against Australia's Westpac amid money-laundering scandal
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Bengaluru
AUSTRALIA'S No 2 lender Westpac Banking Corp was hit with a second US class-action lawsuit in less than a week on Monday, over issues with its financial crime monitoring amid a recent money laundering scandal.
Westpac was sued by Australia's financial crime watchdog Austrac in November for 23 million alleged breaches of anti-money laundering laws, including payments between known child exploiters.
The latest suit, filed by investor rights law firm Bernstein Liebhard in a US court, comes just days after six US-based law firms announced similar class-action lawsuits against the lender.
Westpac on Saturday had cautioned that similar suits may follow, while responding to New York-based Rosen Law Firm's suit.
Bernstein said in a statement the class action was filed on behalf of investors who bought Westpac's securities between Nov 11, 2015 and Nov 19, 2019.
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The law firm accused the lender of not carrying out appropriate due diligence on transactions in South-east Asia and the Philippines, and failing to monitor terrorism financing risks with movement of money into and out of Australia among others.
Last month, the lender appointed a former Barclays boss as its chairman to steer it through the money-laundering scandal. Westpac media representatives did not immediately respond to an e-mail and a call seeking comment. REUTERS
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