Commonwealth Bank Money Laundering Scheme

Commonwealth Bank Money Laundering Scheme

The Commonwealth Bank has responded to revelations it failed to monitor transactions in the USA, Asia and Europe.

An internal review of the bank’s compliance with Australian and global anti-money laundering and counter terrorism laws reportedly showed large-scale failures in transaction monitoring across a multitude of businesses around the world, according to Sky News Business.

Sky News Business obtained a document indicating the bank failed to monitor billions of dollars of transactions in some of its businesses in USA, Asia, and Europe, raising questions about its compliance with anti-money laundering and terror laws. A confidential review of the Commonwealth Bank’s institutional banking and markets presented to senior bank executives in February this year showed non-existent or minimal transaction monitoring across almost two thirds of the CBA’s Institutional Banking Markets division.

This followed action earlier last month when Austrac, the regulator responsible for tracking suspicious transactions, filed a lawsuit claiming Commonwealth Bank had breached anti-money laundering requirements on 53,700 occasions since 2012. Many of the alleged breaches surrounded the bank’s “intelligent” ATM deposit scheme. But the banking giant has hit back, saying it “maintains proactive relationships with all relevant global regulators on these and other matters”.

The internal review was a working document, the banks says in a statement, proposing modifications to its automated deposit system. It says $230 million is being spent as part of a “Program of Action” to “strengthen policies and processes related to financial crimes compliance”. It says a Committee of the Board of the Bank was established on August 8 to oversee Austrac’s claim. “This Program is working to strengthen the Group’s anti-money laundering frameworks,” CommBank says. “The Committee, which meets weekly, is requesting and considering information and reports from management relating to the progress of the Program, as well as making recommendations to the Board on matters of accountability.”

The Australian Securities and Investment Commission is understood to be aware of the report as part of its investigation into CBA following the AUSTRAC claims. Finance Minister Mathias Cormann said CBA has some “serious work to do” and that these were the latest “very serious” allegations about the bank.

Technical Analysis


Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 79.74.

The projected upper bound is: 78.06.

The projected lower bound is: 72.67.

The projected closing price is: 75.36.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 18.6359. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 17 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 27.03. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 160 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -101.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 7 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 21 period(s) ago.

Rex Takasugi – TD Profile

CWLTH BANK FPO closed down -0.320 at 75.480. Volume was 29% above average (neutral) and Bollinger Bands were 45% wider than normal.

Open     High      Low       Close     Volume
76.000  76.200  75.080  75.480  4,684,590

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period     50-period    200-period
Close:                       76.96            81.46             82.26
Volatility:                12                  21                   19
Volume:                   4,550,474   3,679,726      3,170,719

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


CWLTH BANK FPO is currently 8.2% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume out of CBA.AX (mildly bearish). Our trend forecasting oscillators are currently bearish on CBA.AX and have had this outlook for the last 20 periods. Our momentum oscillator is currently indicating that CBA.AX is currently in an oversold condition.

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Ivy Heffernan

My name is Ivy Heffernan, and I am interested in a wide range of professions. Economics and politics at the age of 18 is easy when your father has a Ph.D in economics, i have been taught to put together technical analyst and stay up to date with the changing markets as well as what is happening in the political world.

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