Commonwealth Bank boss to retire amid laundering claims

Commonwealth Bank boss to retire amid laundering claims

Word on the succession process was disclosed to ensure the market is fully informed and to provide certainty for the business, Ms. Livingstone said.

The chief executive of Australia's biggest bank, the Commonwealth, will retire, the company said Monday, amid pressure from regulators over alleged breaches of money laundering and terrorism financing laws.

Mr Narev had faced calls to step down after the Australian Transaction Reports and Analysis Centre (Austrac) launched a civil action against the bank over what it described as "serious and systemic" breaches of anti-money laundering laws. AUSTRAC has accused CBA of "serious and systemic" breaches of money-laundering and counter-terrorism financing rules, alleging the country's second biggest mortgage lender failed to detect suspicious transactions almost 54,000 times.

Ms. Livingstone said that, in discussion with Mr. Narev, it had been agreed it was important for the bank to deal with speculation and questions about his tenure.

Narev will be paid A$5.71 million for the year ending June 2017, down 35 percent from last year's A$8.77 million.

A better-than-expected 4.6 percent rise in annual profit to A$9.88 billion, posted on August 9, failed to appease investors' concerns.

CBA chief executive Ian Narev is walking away.

But it has also been marred by scandals over poor financial planning advice, insurance payouts and the latest allegations of money laundering.

Commonwealth Bank last traded up 0.8% at AUD81.14 a share.

CBA stands accused of not reporting more than 53,000 transactions that were above AUSTRAC's $10,000 threshold, and allowing tens of millions of dollars in proceeds of crime to be deposited with the bank, much of it then transfered overseas.

The Australian Securities and Investment Commission said it would look at whether the bank's board complied with its obligations to tell shareholders about all potential liabilities.