Australia and New Zealand Banking Group Limited (ANZ), one of Australia’s banking giants, has found itself at the center of a storm after agreeing to pay a record-breaking AU$240 million (US$160 million) penalty for a series of corporate misconduct cases. The fine, announced on September 15, 2025, by both ANZ and the Australian Securities and Investments Commission (ASIC), marks the largest ever imposed by the country’s financial regulator, shattering the previous record of AU$113 million set against Westpac in 2022, according to the Associated Press and statements from ASIC.
The scope and gravity of ANZ’s misconduct are staggering. The bank admitted to a litany of breaches affecting nearly 65,000 customers and the Australian federal government. Among the most egregious violations, ANZ failed to refund charges to thousands of deceased customers and neglected to respond to hundreds of customer hardship notices—some left unanswered for over two years. The bank also made false and misleading statements about savings interest rates and failed to pay the promised interest to tens of thousands of customers, according to ASIC’s official statement. These failures point to systemic shortcomings that have persisted for years, despite repeated warnings and previous penalties.
ASIC Chair Joe Longo did not mince words when addressing the scale of the wrongdoing. “The penalties we’ll be asking the court to impose including a record penalty ASIC has sought for unconscionable conduct reflects the seriousness and number of breaches of law, the vulnerable position that ANZ put its customers in and the repeated failure to rectify crucial issues,” Longo said, emphasizing both the human impact and the institution’s repeated inability to address its failings.
Perhaps most shocking to many Australians was the revelation that ANZ charged fees to over 65,000 customers after their deaths. In some instances, the bank continued to collect charges for years, compounding the distress of bereaved families and highlighting a lack of basic oversight. The bank’s neglect extended to customers facing financial hardship, with hundreds of hardship notices left unaddressed for extended periods. For those struggling to make ends meet, a lack of timely response from their bank can mean the difference between recovery and financial ruin.
The misconduct was not limited to individual customers. ANZ also admitted to misleading the Australian government while managing AU$14 billion (US$9.3 billion) in bonds over a two-year period. ASIC labeled this behavior “unconscionable,” underscoring the seriousness of breaching trust not just with customers, but also with the government itself. The regulator’s findings paint a picture of a bank that, for years, failed to meet even the most basic standards of honesty and care in its dealings.
For ANZ’s new CEO, Nuno Matos, the timing of the penalty could hardly be worse. Matos, who took over the helm in May 2025, now faces the daunting challenge of steering the bank through its most turbulent period in recent memory. Just days before the record fine was announced, ANZ laid off 8% of its workforce—a move intended to cut costs but one that has only added to the sense of upheaval within the organization. In a statement reported by the Associated Press, Matos acknowledged the depth of the bank’s failings: “The failings outlined are simply not good enough and they reinforce the case for change.” He also emphasized his expectation for “measurable improvements” that would result in better care for customers.
But Matos’s challenge is formidable. Restoring trust with customers, regulators, and the wider public will require more than just promises of reform. The bank’s chair has also come under scrutiny, raising questions about accountability at the highest levels. As the bank grapples with the fallout, the pressure is on to deliver real, lasting change—something that has eluded the institution in the past.
Indeed, this is not the first time ANZ has run afoul of regulators. The latest penalty is merely the culmination of a lengthy history of misconduct and regulatory breaches. In 2017, ANZ was fined AU$10 million for attempting to manipulate a key Australian interest rate. Three years later, the bank paid another AU$10 million after incorrectly charging customers non-payment fees. In 2022, it was hit with a AU$25 million penalty for failing to deliver agreed benefits to nearly 700,000 customer accounts. And just last year, ANZ faced fines for misleading customers about available funds and for accepting information from unlicensed third parties in its home loan introducer program. Each of these incidents, while damaging in their own right, now appears as part of a broader pattern of systemic failure.
The cumulative effect of these breaches has been to erode public trust—not just in ANZ, but in the banking sector as a whole. For many Australians, the revelations serve as a sobering reminder of the importance of transparency, accountability, and ethical conduct in financial services. The record fine sends a clear message: regulators are no longer willing to tolerate systemic failures and unethical practices, no matter how large or influential the institution involved.
For the wider banking industry, the fallout from ANZ’s misconduct is likely to be significant. Other institutions will be watching closely, reassessing their own practices and internal controls to avoid similar pitfalls. The fine also raises broader questions about the effectiveness of corporate governance in Australia’s financial sector and the adequacy of existing safeguards to protect customers.
Yet, amid the turmoil, there are early signs that the tide may be turning. Both ANZ and ASIC have indicated that they will ask a federal court to endorse the penalties for four separate prosecutions, signaling a willingness to pursue accountability through the legal system. And with new leadership at the helm, there is at least the prospect of meaningful reform—though only time will tell whether the changes promised by Matos and his team will be enough to restore the bank’s battered reputation.
As ANZ prepares to pay the largest penalty in Australian banking history, the message is unmistakable: the days of unchecked misconduct and institutional neglect are over. For customers, regulators, and the industry at large, the hope is that this moment will serve as a turning point—one that ushers in a new era of accountability, integrity, and trust in Australia’s financial system.
