Small Business Finance :: News
SHARE

Share this news item!

ANZ Bank Faces A$240 Million Penalty for Bond Deal Misconduct and Customer Service Failures

Examining the Consequences of ANZ's Recent Regulatory Breaches

ANZ Bank Faces A$240 Million Penalty for Bond Deal Misconduct and Customer Service Failures?w=400
ANZ Group, Australia's fourth-largest bank, has agreed to pay a record A$240 million ($159.5 million) in penalties following investigations by the Australian Securities and Investments Commission (ASIC) for major misconduct.
The violations include acting unconscionably during a A$14 billion government bond deal in April 2023, which the regulator says led to A$26 million in lost government funds.
ANZ’s improper trading placed downward pressure on bond prices, undermining government funding.
Additionally, systemic customer service failures were revealed, including charging fees to thousands of deceased customers and not delivering promised interest to new account holders due to system flaws.

This marks the 11th civil penalty action by ASIC against ANZ since 2016, with total penalties exceeding A$310 million. The bank admitted wrongdoing in each case. CEO Nuno Matos plans major operational changes, with a remediation strategy costing A$150 million due by September 2026. Chair Paul O'Sullivan issued an apology, acknowledging the bank's failure to uphold customer trust. These developments come amid ANZ’s announcement of 3,500 job cuts, prompting legal action from the Finance Sector Union. The settlement still requires Federal Court approval.

For customers and stakeholders, these revelations are concerning. They highlight the importance of transparency and ethical conduct in banking operations. ANZ's commitment to rectifying these issues and implementing systemic changes will be crucial in rebuilding trust and ensuring compliance with regulatory standards.

In the broader context, this case underscores the need for robust oversight and accountability within the financial sector. It serves as a reminder for all financial institutions to prioritize customer interests and adhere to ethical practices to maintain the integrity of the banking system.

Published:Sunday, 5th Oct 2025
Source: Paige Estritori

Share this news item:

Finance News

Australian Entrepreneurs Embrace Business Acquisitions Over Startups
Australian Entrepreneurs Embrace Business Acquisitions Over Startups
10 Oct 2025: Paige Estritori
In recent years, a notable trend has emerged among Australian entrepreneurs: a growing preference for acquiring existing businesses rather than launching new startups. This strategic shift reflects a desire for stability and immediate scalability, reducing the inherent risks associated with starting a business from scratch. - read more
Call for Government-Backed Loan Guarantee to Support SME Acquisitions
Call for Government-Backed Loan Guarantee to Support SME Acquisitions
10 Oct 2025: Paige Estritori
Australian accountants are rallying for the establishment of a government-backed Small Business Loan Guarantee to facilitate the acquisition of existing small and medium-sized enterprises (SMEs). This initiative aims to address the financing challenges faced by prospective buyers, particularly in light of the impending retirement of numerous business owners. - read more


Business Loans Articles

Creative Strategies to Fund Your Franchise Without Breaking the Bank
Creative Strategies to Fund Your Franchise Without Breaking the Bank
Embarking on a franchise venture holds the promise of a prosperous future, but all too often, prospective franchisees are confronted with the substantial challenge of securing adequate funding to power their entrepreneurial dreams. With traditional financing routes frequently requiring significant up-front capital, the hurdle of funding becomes a formidable barrier for many. It is for this very reason that we must shine a spotlight on the validity of creative funding strategies that exist outside the conventional banking framework. - read more
Top reasons why small business loans are denied and how to avoid them
Top reasons why small business loans are denied and how to avoid them
Small businesses often require loans to grow and expand their operations. However, not all loan applications are approved, and denials can be frustrating and demotivating for business owners. Understanding the reasons behind loan denials is critical to avoid making the same mistakes and increase the chances of future loan approvals. - read more


Need Help Finding a Loan?
Business Loan Quote
Loan Amount:
Postcode:
All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Balance Sheet:
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.