Two of Australia’s largest banks vowed to toughen oversight of their foreign-exchange practices and each pay A$3 million (£1.86 million) to the nation’s financial literacy fund after a regulator found inappropriate conduct in their currency trading divisions.
Westpac Banking Corp. and Australia & New Zealand Banking Group Ltd. said Wednesday they entered into so-called enforceable undertakings with the Australian Securities & Investments Commission to make changes to their foreign-exchange systems, controls and supervision. An enforceable undertaking is an Australian legal device that is sometimes used as an alternative to civil action by the regulator.
The settlement means Australia’s four biggest banks have now been sanctioned as part of an industrywide investigation into oversight failings in their foreign exchange divisions. Commonwealth Bank of Australia and National Australia Bank Ltd. in December undertook similar undertakings and each contributed A$2.5 million (£1.55 million) to the financial literacy fund for similar breaches.
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