Four arrests have been made in relation to alleged money laundering activity at one of its branches.
Victoria Police have confirmed that four people have been arrested as part of an investigation into alleged money laundering at one of Bendigo and Adelaide Bank’s branches.
The arrests of a 56-year-old man, a 45-year-old man, a 35-year-old woman, and a 23-year-old man happened on 2 September and were interviewed over the Commonwealth offence of dealing with property suspected to be the proceeds of crime.
While the four people have been released, the investigation is continuing.
In a statement provided to The Adviser, Victoria Police said: “Detectives from the Criminal Proceeds Squad arrested four people on Tuesday, 2 September as part of an investigation into alleged money laundering.
“A 35-year-old Mount Waverley woman, a 23-year-old Vermont South man, a 56-year-old Mount Waverley man and a 45-year-old Point Cook man were interviewed in relation to the Commonwealth offence of dealing property suspected to be proceeds of crime.
“The quartet was released pending further inquiries.”
The police said they were “working closely” with Bendigo Bank as part of this investigation, but – as the matter is ongoing – they said it would be “inappropriate” to comment further at this time.
According to an investor update issued on Thursday (4 December), the bank detected activity “indicative of money laundering” at a branch and promptly self-reported the matter to AUSTRAC and law enforcement agencies.
Speaking to investors last week, CEO and managing director Richard Fennell said that he could not provide further details for legal reasons.
He noted, however, that the banking group had engaged big four consultancy company Deloitte to conduct an independent investigation into both the branch-level issues and any systemic AML/CTF deficiencies across the organisation, which had identified “deficiencies” throughout the relevant period regarding the bank’s approach to the identification, mitigation, and management of AML/CTF risk.
Deloitte observed that these deficiencies extended beyond just the branch in question and identified weaknesses and deficiencies across many key aspects of ML/TF risk management, including in relation to the bank’s approach to ML/TF risk assessment and enhanced customer due diligence; oversight of ML/TF risks; its transaction monitoring program; and its approach to customer risk rating.
In a comment on 25 November, the bank board said it was “very disappointed with the findings” and was “fully committed to ensuring that the Bank undertakes the necessary enhancements to its systems, processes and frameworks to ensure it is fully compliant with its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth)”.
Bendigo Bank said it has engaged Deloitte to scope a comprehensive uplift program informed by the investigation. The bank expects the program to include enhancements to its systems, processes, and frameworks to ensure full compliance with regulatory obligations.
The bank added that the uplift program will be overseen by the Strategic Execution Office, alongside dedicated program governance.
Bendigo said it would continue to work closely and collaboratively with regulators throughout the process.
However, the bank also cautioned that the full costs and broader financial impacts of the remediation work are yet to be finalised. A timeline and financial impact assessment will be communicated once confirmed.
In a statement, the bank commented: “In August 2025, Bendigo Bank engaged an independent consultant to conduct an investigation of suspicious activity at one of its branches after the Bank identified and reported the matter to the relevant authorities.
“This investigation has found deficiencies in the Bank’s approach to the identification, mitigation, and management of money laundering and terrorism financing (ML/TF) risk.
“Bendigo Bank understands that financial crime impacts all Australians and takes its ML/TF obligations seriously. The Bank works closely and collaboratively with regulators, government, other financial institutions and law enforcement agencies to detect, respond to, and prevent financial crime.
“The bank has made, and will continue to make, investments to uplift its approach in the identification, mitigation and management of these risks to ensure that it is fully compliant with its obligations.
“Bendigo Bank remains committed to its longstanding purpose to feed into the prosperity of its customers and the community.
“The bank accepts that it has more to do and will continue to work on improving its risk frameworks and processes, in order to continue delivering on its purpose.”
[Related: Loan fraud is greatest AML/CTF risk to non-banks]
