Australia’s banking sector is reeling after ANZ Bank agreed to pay an unprecedented A$240 million fine following a string of admissions of misconduct that have rocked the institution and shaken public confidence. The penalty, announced on Monday, September 15, 2025, by the Australian Securities and Investments Commission (ASIC), is the largest ever sought by the regulator against a single company and still awaits approval from the Federal Court. But even before the ink dries on the court documents, the implications for ANZ’s customers, the broader financial industry, and the bank’s leadership are already being debated across the country.
According to ASIC, the fine stems from a major investigation into four separate but equally troubling areas of misconduct that occurred over many years and affected nearly 65,000 customers. The allegations, which ANZ has admitted to, include unconscionable conduct in managing a massive $14 billion government bond deal, failure to respond to hundreds of customer hardship notices, misleading statements about savings interest rates, and a callous disregard for deceased customers and their families.
Let’s break down the details. First, in April 2023, ANZ handled a federal government bond deal in a manner ASIC described as “unconscionable.” The bank overstated bond trading volumes by tens of billions of dollars over almost two years, providing incorrect data to the federal government. This wasn’t a minor accounting error—it was a fundamental breach of trust in a transaction involving billions of taxpayer dollars. The misreporting raised serious questions about the bank’s internal controls and its willingness to play by the rules when the stakes are highest.
But the misconduct didn’t stop there. ANZ also admitted to ignoring hundreds of customer hardship notices, in some cases for two years or more. These notices often come from individuals facing overwhelming personal or financial difficulties, and banks are required to respond promptly and compassionately. Instead, as ASIC’s investigation revealed, ANZ failed to have adequate hardship procedures in place, leaving vulnerable customers in limbo. For a major institution, this isn’t just a technical oversight—it’s a failure of basic duty of care.
Adding to the list, ANZ made false and misleading statements about its savings interest rates. Tens of thousands of customers were paid the wrong rate, a mistake that went on for years. The bank’s failure to pay the correct interest to its own customers is, as ANZ’s CEO Nuno Matos himself admitted, “simply not good enough and reinforces the case for change.” According to 1News, the scale of the error was so significant that it affected almost 65,000 customers, many of whom may not have realized they were being shortchanged until the scandal broke.
Perhaps most shocking was the revelation that even the dead were not spared. ANZ failed to refund fees charged to thousands of deceased customers, and did not respond to inquiries from loved ones trying to settle deceased estates within the required timeframe. For families already dealing with loss, these delays and oversights added unnecessary pain and frustration. As ASIC Chair Joe Longo put it, “Time and time again ANZ betrayed the trust of Australians.” He continued, “Banks must have the trust of customers and government. This outcome shows an unacceptable disregard for that trust that is critical to the banking system.”
The A$240 million penalty is staggering, but it could have been even higher. Under civil penalty provisions introduced in 2019, the maximum fine could have reached 10% of ANZ’s annual turnover, currently capped at A$825 million per contravention. For context, Volkswagen was fined A$125 million in 2019 for misleading consumers about emissions—a single contravention. ANZ faced four major breaches, yet chose to settle rather than contest the matter in court, likely to avoid even harsher penalties and protracted litigation.
But what does this mean for customers? The penalty itself will be paid to the Commonwealth, not directly to those affected. However, ASIC has indicated that ANZ is completing the required remediation for customers. In some cases, penalties like these are followed by litigation or class actions as customers seek compensation for their losses. The regulator has now brought 11 civil penalties proceedings against ANZ since 2016, including this latest case, as noted by The Conversation.
The fallout isn’t limited to the courtroom or the regulator’s office. ANZ has announced it will spend A$150 million implementing a plan to address shortcomings in its non-financial risk management practices. The bank’s chairman, Paul O’Sullivan, publicly apologized to customers and pledged to take action. Yet for many, the apology rings hollow given the repeated nature of the offenses. In the words of ASIC Chair Joe Longo, “This outcome shows an unacceptable disregard for that trust that is critical to the banking system.”
The case also places renewed pressure on ANZ’s leadership. CEO Nuno Matos, already under fire after announcing plans to lay off 3,500 staff and 1,000 contractors by September 2026, faces tough questions about the bank’s culture and its willingness to prioritize compliance and customer care. The 2019 banking royal commission called for sweeping changes in culture and governance across the sector, urging financial institutions to regularly assess and address shortcomings. Yet, as this case demonstrates, progress has been slow and uneven.
Where do we go from here? For regulators, the message is clear: ASIC is willing to pursue these kinds of cases vigorously and impose record penalties to drive home the importance of compliance. For banks, the lesson is equally stark. Good systems and processes are essential—not just to avoid fines, but to maintain the trust of customers and the broader public. As The Conversation noted, “Australia’s banks should not be making ‘mistakes’ of this scale.”
Some industry observers have even suggested that advanced technologies, such as AI chatbots, could play a role in improving oversight and preventing future misconduct. But technology alone won’t fix a broken culture. True reform will require ongoing vigilance, transparency, and a genuine commitment to putting customers first.
As the dust settles, one thing is certain: the days of banks quietly sweeping misconduct under the rug are over. With regulators, the public, and the courts watching closely, Australia’s financial sector faces a new era of accountability—and the stakes have never been higher.
