When one of Australia's biggest banks can find $240 million to pay fines for unconscionable conduct but simultaneously axes 4,500 jobs, you know something is seriously wrong with corporate priorities.
ANZ's admission to what regulators call 'widespread misconduct' isn't just another banking scandal—it's a betrayal that reaches into the graves of deceased customers and the wallets of every Australian taxpayer.
The $240 million penalty is the largest ever imposed by ASIC on a single company, but the real shock lies in the breadth of ANZ's failures.
The bank admitted to engaging in unconscionable conduct in services it provided to the Australian Government, incorrectly reporting its bond trading data by overstating volumes by tens of billions of dollars, and widespread misconduct affecting nearly 65,000 customers.
Even death couldn't stop the fees
Perhaps most disturbing for many families is ANZ's treatment of deceased customers. The bank failed to refund fees to thousands of dead customers and didn't respond to deceased estates inquiries from loved ones within the required timeframe.
ANZ's failures are likely to have compounded the difficulties faced by loved ones dealing with the death of a family member or relative, as well as frustrating the probate process.
'Time and time again ANZ betrayed the trust of Australians'
ANZ first identified the systems, controls and processes issue in 2022, and took over a year to resolve it. In response in July 2024, ANZ was sanctioned for breaches of the Banking Code of Practice.
Over 18,900 customer accounts were remediated $3.8 million by ANZ for fees it did not intend to charge, with over 9,000 people also contacted to apologise for delays.
When hardship meets heartlessness
The bank's treatment of customers facing financial hardship reveals a culture that prioritised profits over people's pain.
Between May 2022 and September 2024, ANZ failed to respond to 488 hardship notices, sometimes for over two years, despite personal circumstances including unemployment, illness, bereavement, and family violence. Remediation has included payments of $92,687 and credit report corrections.
These weren't just administrative oversights—these were real people facing unemployment, serious illness, family violence, and bereavement who desperately needed their bank's help. Instead, they got silence.
The government bond scandal that cost us all
ANZ's 'unconscionable conduct' in government bond trading might sound like abstract financial jargon, but it has real consequences for every Australian.
ASIC said the settlement included $125 million for matters related to Australian government bond trading, where the bank misreported trading data and acted 'unconscionably' while managing a $14 billion bond deal.
ANZ sold a large chunk of 10-year bond futures around the time the bond issue was priced, which placed downward pressure on bond prices and could have resulted in a shortfall in the bond sale.
ASIC Chair Joe Longo put it bluntly: when ANZ's bond trading misconduct potentially reduced government funding, 'every Australian pays the price' through reduced funding for essential services like health and education.
The penalty breakdown
$125 million for institutional and markets matters (including $80 million for unconscionable conduct)
$115 million for three retail matters affecting nearly 65,000 customers
Total represents the largest ASIC penalty against a single entity in Australian history
A pattern of misconduct spanning years
This isn't ANZ's first rodeo with regulators. Including the current penalties, ASIC has brought 11 civil penalty proceedings against ANZ since 2016, with proposed and ordered penalties totalling more than $310 million. The bank has been a repeat offender since the Royal Commission exposed widespread banking misconduct.
To put this in perspective, all of the big four banks combined have been ordered to pay penalties in excess of $2 billion since the Royal Commission, for conduct ranging from charging incorrect interest rates and deducting fees without providing a service, through to unscrupulous mortgage broking practices and money laundering.
Job cuts while paying fines: A question of priorities
The timing of these penalties couldn't be more awkward for ANZ. The penalties put pressure on the bank's CEO, who came under fire after announcing ANZ would lay off 3,500 staff and 1,000 contractors by September 2026.
Finance Sector Union secretary Julia Angrisano captured public sentiment perfectly: 'ANZ can find $240 million to pay for unconscionable conduct, yet it's cutting 3,500 staff. It shows a bank that is completely unhinged.'
What ANZ customers should know
- Check your account statements for unexplained fees, especially on older accounts
- If you're facing financial hardship, document all communications with the bank
- For deceased estates, keep detailed records of all fee disputes and response times
- Consider the Banking and Finance Consumers Support Centre (1800 805 462) for assistance
- Know that banks must respond to hardship notices within specific timeframes
The human cost behind the headlines
CEO Nuno Matos, who took the helm in May, acknowledged the scale of failure: 'Unfortunately, some of our failings occurred when our customers were at their most vulnerable. For this, we are deeply sorry, and we are making changes to better support our customers when they need us most.'
But apologies don't undo years of system failures that left families struggling with estate matters, customers facing hardship without support, and savers missing out on promised interest payments.
What this means for banking trust
ASIC's unprecedented penalty sends a clear message, but deputy chair Sarah Court said the misconduct reflected deep cultural failings.
'If these penalties are imposed by the court, it will be a clear message to ANZ and all other banks that the cost of breaking the law is not an acceptable cost of doing business.'
For Australian banking customers, especially seniors who may be dealing with estate matters or financial hardship, this case highlights the importance of staying vigilant and knowing your rights. Banks have legal obligations to treat customers fairly, respond to hardship requests promptly, and handle deceased estates appropriately.
Did you know?
Did you know?
ANZ has committed to investing an additional $150 million in a remediation program aimed at fixing weaknesses in its non-financial risk management systems—money that could have prevented these failures in the first place.
The Federal Court still needs to approve these penalties, but ANZ's admission of guilt is clear. Whether this record fine will finally force genuine cultural change at one of Australia's biggest banks remains to be seen. For the thousands of affected customers—living and dead—the damage is already done.
What's your experience with ANZ or the other big banks? Have you faced delays with estate matters or hardship applications? Share your story in the comments below—your experience might help other readers navigate these challenging situations.
Original Article
https://www.news.com.au/finance/bus...s/news-story/0893b9eacf6c8059b5f9718087e300bd
ANZ faces largest ever ASIC penalty for misconduct—Broker Daily
Cited text: ANZ will pay a record $240 million penalty, the largest ever imposed by ASIC on a single company, after admitting to widespread misconduct in both its...
Excerpt: The $240 million penalty is the largest ever imposed by ASIC on a single company
https://www.brokerdaily.au/lender/20823-anz-faces-largest-ever-asic-penalty-for-misconduct
25-201MR ANZ admits widespread misconduct and agrees to pay $240 million in penalties | ASIC
Cited text: Australia and New Zealand Banking Group Limited (ANZ) has admitted to engaging in unconscionable conduct in services it provided to the Australian Gov...
Excerpt: The bank admitted to engaging in unconscionable conduct in services it provided to the Australian Government, incorrectly reporting its bond trading data by overstating volumes by tens of billions of dollars, and widespread misconduct…
https://www.asic.gov.au/about-asic/...t-and-agrees-to-pay-240-million-in-penalties/
'Unacceptable disregard': huge fine for bank misconduct—News | InDaily, Inside South Australia
Cited text: Even the dead were not spared, with ANZ failing to refund fees to thousands of dead customers and not responding to deceased estates inquiries from lo...
Excerpt: The bank failed to refund fees to thousands of dead customers and didn't respond to deceased estates inquiries from loved ones within the required timeframe.
https://www.indailysa.com.au/news/b...table-disregard-huge-fine-for-bank-misconduct
Major Australian bank hit with huge penalty for 'widespread misconduct'
Cited text: Even the dead were not spared, with ANZ failing to refund fees to thousands of dead customers and not responded to deceased estates inquiries from lov...
Excerpt: The bank failed to refund fees to thousands of dead customers and didn't respond to deceased estates inquiries from loved ones within the required timeframe.
https://www.1news.co.nz/2025/09/15/...-with-huge-penalty-for-widespread-misconduct/
25-201MR ANZ admits widespread misconduct and agrees to pay $240 million in penalties | ASIC
Cited text: ANZ’s failures are likely to have compounded the difficulties faced by loved ones dealing with the death of a family member or relative, as well as fr...
Excerpt: ANZ's failures are likely to have compounded the difficulties faced by loved ones dealing with the death of a family member or relative, as well as frustrating the probate process.
https://www.asic.gov.au/about-asic/...t-and-agrees-to-pay-240-million-in-penalties/
25-201MR ANZ admits widespread misconduct and agrees to pay $240 million in penalties | ASIC
Cited text: ANZ first identified the systems, controls and processes issue in 2022, and took over a year to resolve it. In response in July 2024, ANZ was sanction...
Excerpt: ANZ first identified the systems, controls and processes issue in 2022, and took over a year to resolve it.
https://www.asic.gov.au/about-asic/...t-and-agrees-to-pay-240-million-in-penalties/
ANZ faces largest ever ASIC penalty for misconduct—Broker Daily
Cited text: - Financial hardship mishandling: Between May 2022 and September 2024, ANZ failed to respond to 488 hardship notices, sometimes for over two years, de...
Excerpt: Between May 2022 and September 2024, ANZ failed to respond to 488 hardship notices, sometimes for over two years, despite personal circumstances including unemployment, illness, bereavement, and family violence.
https://www.brokerdaily.au/lender/20823-anz-faces-largest-ever-asic-penalty-for-misconduct
ANZ Australia faces record $240m penalty for ripping off customers, government | RNZ News
Cited text: ASIC said the settlement included $125 million for matters related to Australian government bond trading, where the bank misreported trading data and ...
Excerpt: ASIC said the settlement included $125 million for matters related to Australian government bond trading, where the bank misreported trading data and acted 'unconscionably' while managing a $14 billion bond deal.
https://www.rnz.co.nz/news/business...-penalty-for-ripping-off-customers-government
ANZ faces largest ever ASIC penalty for misconduct—Broker Daily
Cited text: Including the current penalties, ASIC has brought 11 civil penalty proceedings against ANZ since 2016, with proposed and ordered penalties totalling m...
Excerpt: Including the current penalties, ASIC has brought 11 civil penalty proceedings against ANZ since 2016, with proposed and ordered penalties totalling more than $310 million.
https://www.brokerdaily.au/lender/20823-anz-faces-largest-ever-asic-penalty-for-misconduct
Compare the big 4 banks in Australia | Canstar
Cited text: In the years since the Royal Commission, all of the big four banks combined have been ordered to pay penalties in excess of $2 billion, for conduct ra...
Excerpt: all of the big four banks combined have been ordered to pay penalties in excess of $2 billion since the Royal Commission, for conduct ranging from charging incorrect interest rates and deducting fees without providing a service, through to…
https://www.canstar.com.au/home-loans/compare-the-big-four-banks-in-australia/
'Unacceptable disregard': huge fine for bank misconduct—News | InDaily, Inside South Australia
Cited text: The penalties will put more pressure on the bank’s CEO, who came under fire on Tuesday after announcing ANZ would lay off 3500 staff and 1000 contract...
Excerpt: The penalties put pressure on the bank's CEO, who came under fire after announcing ANZ would lay off 3,500 staff and 1,000 contractors by September 2026.
https://www.indailysa.com.au/news/b...table-disregard-huge-fine-for-bank-misconduct
Major Australian bank hit with huge penalty for 'widespread misconduct'
Cited text: The penalties will put more pressure on the bank's CEO, who came under fire on Tuesday after announcing ANZ would lay off 3500 staff and 1000 contract...
Excerpt: The penalties put pressure on the bank's CEO, who came under fire after announcing ANZ would lay off 3,500 staff and 1,000 contractors by September 2026.
https://www.1news.co.nz/2025/09/15/...-with-huge-penalty-for-widespread-misconduct/
Australia’s ANZ bank hit with record fine over ‘widespread misconduct’ | FMT
Cited text: ASIC Deputy Chair Sarah Courtsaid, “As one of Australia’s biggest banks, customers trusted ANZ to do the right thing but even on the basics like payin...
Excerpt: 'ANZ can find $240 million to pay for unconscionable conduct, yet it's cutting 3,500 staff.
https://www.freemalaysiatoday.com/c...t-with-record-fine-over-widespread-misconduct
ANZ (ASX:ANZ) share price in focus on huge $240 million penalty | Rask Media
Cited text: Unfortunately, some of our failings occurred when our customers were at their most vulnerable. For this, we are deeply sorry, and we are making change...
Excerpt: 'Unfortunately, some of our failings occurred when our customers were at their most vulnerable.
https://www.raskmedia.com.au/2025/09/15/anz-asxanz-share-price-in-focus-on-huge-240-million-penalty/
ANZ faces largest ever ASIC penalty for misconduct—Broker Daily
Cited text: When public funds are put at risk, every Australian pays the price.” · ASIC deputy chair Sarah Court said the misconduct reflected deep cultural faili...
Excerpt: deputy chair Sarah Court said the misconduct reflected deep cultural failings.
https://www.brokerdaily.au/lender/20823-anz-faces-largest-ever-asic-penalty-for-misconduct
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