On December 18, 2025, Australian authorities announced that it was investigating Bendigo and Adelaide Bank (“Bendigo Bank”) for possible money laundering and non-financial risk management deficiencies uncovered during an independent review of the bank. The Australian Transaction Reports and Analysis Centre (“AUSTRAC”), Australia’s financial intelligence agency, and the Australian Prudential Regulation Authority (“APRA”), an independent statutory authority that oversees key financial systems in Australia, launched coordinated actions to review the deficiencies identified during the independent review and to ultimately ensure that the bank sufficiently enhances its risk management systems and practices.
AUSTRAC reported that it will focus on Bendigo Bank’s compliance with its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (“AML/CTF Act”) while the APRA will review the bank’s operations more broadly. The APRA reported that it will also require the bank to perform a “root cause analysis” to determine the extent of the bank’s non-financial risks management issues and will require the bank to hold an additional $50 million in operational risk capital – an add-on that will remain in place until the bank has adequately remediated and addressed the APRA’s concerns. APRA Chair John Lonsdale stated that, while Bendigo Bank is “financially sound and comfortably above its core capital and liquidity requirements,” the investigation will largely focus on identifying significant risk management gaps that might require urgent attention. AUSTRAC and APRA also intend to hold those responsible for the deficiencies accountable.
APRA and AUSTRAC Media Release