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Westpac puts Australia on bad banking leaderboard

Global banks have paid out around US$10.5 billion in fines so far this year, with Westpac taking out third place thanks to the AUSTRAC scandal.

The research, provided by Finbold, listed the top 10 biggest fines paid by global banks with US institutions taking out four of the 10 top spots.

Westpac came in at number three after reaching the record breaking deal with AUSTRAC following 23 million breaches of the nation's anti-money laundering laws.

Goldman Sachs was number one, having paid US$3.97 billion in relation to settlement charges in Malaysia against the Wall Street bank for its role in helping to raise hundreds of millions for a sovereign wealth fund that was used as a personal piggy bank.

The bank was fined $2.5 billion and guaranteed the return of $1.4 billion in assets from the theft of billions of dollars from a Malaysian government fund.

The US's Wells Fargo was in second place, having paid US$2.96 billion this year.  Wells Fargo was hit with the fine by federal authorities in relation to millions of fake accounts created at the bank over many years.

Other nations in the top 10 include Israel's Bank Hapoalim, Sweden's Swedbank and SEB bank, the US's CitiGroup and Cherry Hill, Germany's Deutsche Bank and Canada's Scotiabank.

Bank Hapoalim, Israel's largest bank, and its Swiss subsidiary are set to pay a total of US$904 million to state and federal authorities in separate settlements.

One case relates to the bank's role in a massive tax-evasion scheme, while the other concerns its role in a money-laundering conspiracy with soccer federation FIFA.

Sweden's Swedbank was fines EUR360 million for deficiencies in its risk of money laundering in its Baltic operations.

CitiGroup was served a cease and desist order from the US Federal Reserve for falling short of risk management and internal controls.

The order requires CitiGroup to correct practices and the bank agreed to pay US$400 million and must now seek authorisation from the government for any major acquisitions.

Deutsche Bank agreed to pay US$150 million for compliance failures in connection to the banks relationship with convicted pedophile Jeffrey Epstein.

Canada's Scotiabank reached settlement agreements with the US Department of Justice and the Commodity Futures Trading Commission over charges of metals market manipulation.

Read more: WestpacCitiGroupDeutsche BankScotiabankSwedbankWells FargoBank HapoalimCherry HillFinboldGoldman Sachs
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