Australia and New Zealand Banking Group Limited (ANZ) has been ordered by the Federal Court to pay USD 250 million in combined penalties.
The court accuses ANZ of widespread misconduct and systemic risk failures that negatively affected the Australian Government, taxpayers, and a minimum of 65,000 retail bank customers.
At the time of writing, these come as the largest combined penalties ASIC has ordered for a single entity.
ANZ’s misconduct
The current news relates to four court proceedings, including misconduct across ANZ’s Institutional and Retail divisions. His Honour Justice Jonathan Beach ordered the financial institution to pay:
- USD 135 million in combined penalties over institutional and market misconduct in relation to the management of a USD 14 million government bond deal and inaccurate reporting of secondary bond market turnover data to the Australian Government. This includes a USD 80 million penalty for unconscionable conduct;
- USD 40 million for not responding to customer hardship notices and failing to have appropriate hardship procedures;
- USD 40 million for making misleading statements about savings interest rates and failing to pay the promised interest rate to customers;
- USD 35 million for not refunding fees charged to deceased customers and not responding to families trying to deal with such estates within the required timeframe.
ASIC Chair Joe Longo commented on the decision, saying that the penalties ordered reflect the seriousness of ANZ’s misconduct and its consequences for the Government, taxpayers, and customers. He added that the financial institution must overhaul its non-financial risk management and place the interests of clients, customers, and the public among its priorities.
When it comes to ANZ, the financial institution admitted to the misconduct in September 2025 and, together with ASIC, asked the Federal Court to order penalties of USD 240 million. His Honour Justice Jonathan Beach noted that ANZ engaged with ASIC in advance of these proceedings being conducted, including by admitting to its conduct at the earliest available opportunity. The financial institution acknowledged liability when it comes to the admitted contraventions.
