The Australia and New Zealand Banking Group (ANZ) has come under scrutiny recently for serious failures in how it has conducted its business. The result? A record AUD $240 million penalty for the major bank – one of the largest ASIC has ever announced against a single entity to date.
So what did ANZ do wrong?
The failures by ANZ affected both government dealings and everyday customers of the bank, potentially impacting almost 65,000 customers.[1]
Let’s take a brief look at the key issues:
Improper Conduct in Government Bond Trading
ANZ was involved in a large government bond transaction and acted in a way that unfairly influenced the market. This may have led to the government receiving less money than it should have and potentially costing millions to Australian taxpayers.
Neglecting Customers in Financial Hardship
Hundreds of ANZ customers who’d been experiencing financial hardship (from illness, unemployment, or family loss) had reached out to ANZ for help, but there were many cases where the bank had failed to respond for extended periods. Some customers reportedly had to wait more than two years without receiving a response, while others were even pursued for debt while still waiting for assistance.
Misleading Interest Rate Promises
ANZ advertised bonus interest rates on savings accounts but failed to pay the promised amounts to thousands of their customers, resulting in significant financial loss for those affected.
Charging Fees to Deceased Customers
…At this point, you may be thinking ‘…But didn’t the Banking Royal Commission of Australia (which ran from 2017 to 2019) expose that kind of misconduct?’ The answer is, yes, it did. And ANZ certainly should have known better. Instead, the bank continued to break the rules, charging fees to customers who’d passed away and, in many cases, failing to support families trying to settle their loved ones’ accounts.
Lessons learned?
While ANZ has admitted fault in response to the issues and agreed to pay a significant financial penalty, given the extent of the misconduct, it appears to need more than an overhaul of its systems and processes – It needs to do some serious soul-searching.
The ANZ case serves as stark reminder that – for even the largest organisations – accountability matters.
Regardless of profits, banks and financial institutions must still uphold ethical standards and act with transparency, fairness, empathy and respect.
When a major financial institution fails to act with integrity, the consequences ripple far beyond the balance sheets – they affect real people, families and public trust.
Let’s hope all financial institutions have learned from the lessons this time.
For financial advice you can trust, call Align Financial on 02 9913 9995.
[1] ASIC Medica Release: ANZ admits widespread misconduct and agrees to pay $20 million in pernalties, available online at: https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2025-releases/25-201mr-anz-admits-widespread-misconduct-and-agrees-to-pay-240-million-in-penalties/
