ANZ Hit with Record AUD 240 Million Fine for Widespread Misconduct
Published Date: 15th Sep, 2025
Sydney / Melbourne, September 15, 2025 — ANZ Bank has been ordered to pay a record AUD 240 million penalty after regulators uncovered systemic misconduct that spanned both its institutional and retail operations. The fine, the largest ever imposed on a single entity by Australian financial regulators, underscores long-standing failures in compliance, customer service, and corporate culture.
Misconduct uncovered
Investigations found ANZ guilty of multiple breaches, including:
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Misleading the federal government during a major bond transaction, where the bank overstated trading volumes and acted in a manner deemed “unconscionable.”
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Ignoring hundreds of hardship notices from customers, in some cases for more than two years.
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Continuing to charge fees to deceased customers without issuing refunds.
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Making misleading statements about savings interest rates and failing to deliver promised returns to many clients.
Regulators concluded these failings were not isolated errors but systemic breakdowns across ANZ’s operations.
Penalties and bank response
The AUD 240 million fine is split between institutional and retail violations:
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Around AUD 125 million for breaches linked to institutional trading, including the bond misrepresentation.
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Roughly AUD 115 million for retail-level failings, including customer mistreatment and misleading product disclosures.
ANZ’s new chief executive, Nuno Matos, who took office earlier this year, acknowledged the gravity of the misconduct. He pledged to improve compliance, overhaul customer service, and ensure accountability at senior levels.
Regulators sharply criticized ANZ’s conduct, describing the breaches as serious, systemic, and damaging to public trust.
Wider implications
The size of the penalty has reignited debate over accountability in Australia’s banking sector. Analysts suggest ANZ will face sustained pressure to strengthen risk management, improve complaint handling, and restructure parts of its business to prevent repeat failures.
The scandal may also affect customer confidence and investor sentiment. Employee morale is expected to come under strain as the bank enacts internal reforms.
Next steps
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Court approval: The penalty still requires confirmation in federal court before becoming final.
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Customer remediation: ANZ must compensate affected customers, including those charged inappropriate fees or misled about products.
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Cultural change: Beyond operational fixes, regulators expect the bank to demonstrate genuine cultural reform in how it treats customers and manages risk.
Bottom line: The record fine signals regulators’ intent to hold banks accountable for systemic misconduct. For ANZ, it represents not just a financial penalty but a demand for deep cultural and structural change to restore public trust.
Date: 15th Sep, 2025
