Key Takeaways
- Australia and New Zealand Banking Group (ANZ) has agreed to pay a record A$240 million (US$160 million) penalty for widespread corporate misconduct, marking the largest fine ever sought by the Australian Securities and Investments Commission (ASIC) against a single entity.
- The misconduct encompasses four separate proceedings, including unconscionable conduct in managing a A$14 billion government bond deal and significant failures in its retail division affecting nearly 65,000 customers.
- New Chief Executive Officer Nuno Matos acknowledged the "unacceptable failings" and stressed the need for "measurable improvements" as the bank undertakes a comprehensive cultural and organizational overhaul.
Melbourne, Australia – Australia’s top securities regulator has imposed a record A$240 million (US$160 million) fine on Australia and New Zealand Banking Group (ANZ) for widespread corporate misconduct, with the bank's new chief, Nuno Matos, stating there is "a lot of work to do" to prevent future recurrences. The penalty, announced Monday, September 15, 2025, represents the largest ever sought by the Australian Securities and Investments Commission (ASIC) against a single entity for corporate misconduct, surpassing the A$113 million fine imposed on Westpac in 2022.
The substantial fine addresses four separate proceedings, highlighting significant failings across both ANZ's institutional and retail divisions. ASIC Chair Joe Longo emphasized that the penalties reflect "the seriousness and number of breaches of law, the vulnerable position that ANZ put its customers in and the repeated failure to rectify crucial issues." Longo added that "time and time again ANZ betrayed the trust of Australians."
In its institutional and markets division, ANZ (ANZ) was fined A$125 million, including a record A$80 million for unconscionable conduct. This stemmed from its management of a A$14 billion ($9.3 billion) government bond deal, where the bank misled the Australian government about trading turnover for nearly two years. ASIC alleged that ANZ sold significant volumes of 10-year Australian bond futures around pricing time, creating "undue downward price pressure" on the bond.
The bank's retail division faced A$115 million in penalties for three separate matters. These included failing to refund charges to thousands of deceased customers and neglecting to respond to hundreds of customer hardship notices, with some delays extending over two years. Furthermore, ANZ made false and misleading statements about savings interest rates and failed to pay promised interest to tens of thousands of customers, with nearly 195,000 accounts underpaid bonus interest between July 2013 and January 2024, requiring A$10.4 million in compensation.
Nuno Matos, who assumed the role of CEO in May, acknowledged the bank's "unacceptable failings" and stated, "The failings outlined are simply not good enough and they reinforce the case for change." Matos has committed to driving "measurable improvements" in customer care and business sustainability. As part of a broader cultural and organizational overhaul, ANZ plans to cut approximately 3,500 jobs by September 2026 and invest an additional A$150 million to strengthen its non-financial risk management framework. The agreed penalties are now subject to consideration and approval by the Federal Court.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.