Commonwealth Bank chairman Catherine Livingstone says staff could be fired if the lender finds any further evidence of serious misconduct.
Facing a House of Representatives committee hearing, on Friday Ms Livingstone said there could be greater consequences for those who commit wrongdoing.
Related Reading
No deliberate breach of law says Commonwealth Bank CEO
CBA executives forfeited short-term incentives and the board imposed a 20 per cent reduction in its 2017 directors' fees, amid allegations the bank breached anti-money laundering and terrorism funding laws.
The proposed action launched by AUSTRAC in August alleges CBA failed to provide on-time reports for 53,506 cash transactions of $10,000 or more made using its Intelligent Deposit Machines between November, 2012 and September, 2015.
"Where claims of serious misconduct are substantiated, there are consequences, including dismissal," Ms Livingstone told MPs in Canberra on Friday.
"People who underperform are supported to improve, however if their performance doesn't improve they are also asked to leave.
"We have to go through all the processed...to determine the fact and where the individual accountability relies."
Chief executive Ian Narev said no-one had been fired as a result of the AUSTRAC claims and no-one will be dismissed until the committee has completed a review of responsibility.
Commonwealth Bank CEO Ian Narev speaks during the House of Representatives Economic Committee inquiry at Parliament House (AAP) Source: AAP
"They are not immune from any further conclusion that the committee may draw based on the facts that we have," he said.
Mr Narev announced in August he will leave his role by the end of June, following the bank's decision to "deal with speculation" over his position during the allegations.
He also had his short-term bonuses slashed, more than halving his annual pay to $5.5 million from $12.3 million the year before.
Committee chairman David Coleman noted CBA's share price was down six per cent since AUSTRAC made its allegations in August, whereas the fellow major banks were up an average six per cent.
"That's about $15 billion of shareholder value, which would seem to me to be the largest shareholder destruction in Australian history," he said.
CBA shares fell almost 12 per cent in the month following the allegations, but have since recovered some of the losses.
Mr Narev said the bank hopes those "short-term losses" will be recovered over the long-term.
He said CBA will be filing a statement of defence in December to the Federal Court action brought against the bank by AUSTRAC.
Share
