National Australia Bank faces a lawsuit from the corporate watchdog over a scandal involving its use of home loan “introducers,” in a landmark case that could attract a maximum penalty of more than $500 million.
Although the financial cost for NAB could be significant, depending on the outcome of the case, Mr Crennan said the maximum penalties were “quite hypothetical – they’re not the type of penalty you would actually get from a court”. Commonwealth Bank's $700 million fine for a mass breach of anti-money laundering laws was the biggest civil corporate penalty in Australian history.
“There will be other cases in coming weeks and months, certainly before the Christmas, there will be a significant number of cases that relate to the royal commission being issued,” he said. In March, NAB scrapped its introducer program, which was the biggest scheme of this nature in the industry, and had thousands of people on its books. Under the scheme, the bank paid nearly $100 million in commissions between 2013 and 2016, and it generated $24 billion worth of loans.Atlas Funds Management chief investment officer at Hugh Dive said the action was a sign of ASIC taking a more aggressive role against banks following the royal commission.
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