ANZ has been sanctioned for charging fees to the estates of dead clients in what has been described as a serious breach by the Banking Code Compliance Committee (BCCC), the industry’s independent monitor.
The bigger picture: The major bank was found to have failed to stop charging, and failed to refund fees charged to, deceased estates after customers’ deaths.
It also failed to respond to requests for information from the dead clients’ representatives, which it is required to do in under 14 days.
The key quote: “The significance of the deficiencies in ANZ’s compliance frameworks was deeply concerning,” said committee chair Ian Govey.
He said publicly naming the bank for its failures was the most serious sanction the industry overseer could levy.
What else to know: ANZ identified the issue in 2022 but took over a year to start implementing solutions and another year before it started its ongoing customer remediation program.
What happens next: The BCCC found another bank had charged fees to deceased estates but chose not to publicly name the financial firm as it resolved the issue within a reasonable timeframe. It is investigating a third bank.
