State Street Bank fined $1.24 million for breaching AML laws

  • Wilbur Rodgers
  • September 17, 2020
  • 2 minutes read
  • 80

The US-based State Street bank has been hit with million-dollar money laundering fine. The Australian arm of State Street band is the latest financial institution to be penalised for infringement of anti-money laundering laws.

The bank has been stroked with $1.24 million infringement notice for its failure to adequately declare international transfer instructions. This incompetency of the bank left it exposed to various organised crimes such as terrorism, money laundering, drug trafficking, and tax evasion etc.

According to ABC analysis, State Street was fined for 99 breaches – $12,000 for each breach. These breaches were self-reported by the bank to the Australian Transaction Reports and Analysis Centre (AUSTRAC).

Peter Soros – AUSTRAC deputy chief executive – stated that AM financial institutions are required to timely and accurately report foreign transactions to deter organised crimes efficiently. Soro said,
“State Street has worked with us on this matter but it’s really important that all businesses regulated by AUSTRAC take this seriously”

He further elaborated about the evolution of the criminal mindset and how it is challenging the financial landscape.