APRA and AUSTRAC have launched coordinated action against Bendigo and Adelaide Bank after an independent Deloitte review uncovered serious gaps in its money laundering and broader non‑financial risk management.
The review, triggered by suspected money laundering at a Bendigo Bank branch and reported by the bank to AUSTRAC, “found significant deficiencies with Bendigo Bank’s approach to the identification, mitigation, and management of money laundering and terrorism financing risk.”
APRA says it is concerned the weaknesses “may be applicable across the bank’s operations more broadly”, a view AUSTRAC shares.
“Although Bendigo and Adelaide Bank is financially sound and comfortably above its core capital and liquidity requirements, we are concerned there may be significant gaps in its risk management framework that need to be addressed urgently," APRA Chair John Lonsdale said in a joint announcement.
“While the non-financial risk, anti-money laundering spaces are a priority in light of the recent independent report, APRA is concerned that similar weaknesses may exist across the bank.
“The measures we are announcing today alongside AUSTRAC aim to ensure that fundamental deficiencies in Bendigo Bank’s risk management framework are identified and addressed and those responsible are held to account as appropriate.”
Bendigo and Adelaide Bank said APRA’s $50 million operational risk capital charge, effective 1 January 2026, is expected to reduce its Level 2 CET1 ratio by about 17 basis points. As at 30 November 2025, its CET1 ratio was 11.19% and “remains well above the board’s target and APRA’s definition of ‘unquestionably strong’.”
Under the coordinated response, regulators have outlined three key measures:
AUSTRAC Acting CEO Katie Miller said the agency has been “closely monitoring Bendigo Bank’s compliance with its AML/CTF obligations.”
“This enforcement investigation follows supervisory engagement with Bendigo Bank and the bank’s recent disclosure of deficiencies in its approach to the identification, mitigation, and management of money laundering and terrorism financing risks,” Miller said.
“Our investigation will examine Bendigo Bank’s compliance with the AML/CTF Act and inform any further AUSTRAC action.”
Bendigo Bank has acknowledged the seriousness of the findings and says it is stepping up its risk‑management overhaul.
“The bank recognises robust risk management practices are critically important to ensure the bank can continue to protect its customers and deliver on its purpose of feeding into the prosperity of customers and communities,” Bendigo Bank Chair Vicki Carter (pictured left) said in a media release.
CEO and managing director Richard Fennell (pictured right) added: “Bendigo Bank has taken a number of steps to improve its risk capability and strengthen its risk culture over the last 12 months however I recognise the need to intensify our focus and our efforts.”
The capital add‑on will remain in place “until Bendigo Bank has completed remedial measures and addressed wider concerns to APRA’s satisfaction.” AUSTRAC has also flagged a “wide range of possible enforcement actions” but has not yet decided on its final response.
Bendigo said “the board and executive are fully committed to the required uplift in non-financial risk maturity,” with cost estimates for the remediation program to be provided to the market once they are determined. Regulators stressed that the measures announced “do not preclude further actions from being taken by the agencies in the future.”
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