Australia-based financial institution Westpac said in its latest earnings report that it has set aside AUS$900 million (U.S. $570 million) for a potential fine with Australian enforcement authorities related to a money laundering scandal and for allegations of facilitating child exploitation in the Philippines and Southeast Asia.
Westpac said Tuesday the actual penalty “may be materially higher or lower than the [$900 million] provision.” It also said it would also take a AUS$130 million (U.S. $82 million) hit to its cash earnings resulting from its compliance response plan “to improve its financial crime program, support industry initiatives to enhance financial crime monitoring and provide additional support and resources to organizations working to eradicate child exploitation.”
