The Australian Securities and Investments Commission (ASIC) has accused ANZ of “acting unconscionably” in its management of a $14 billion bond deal for the Australian Government, alleging the bank overstated its bond trading volumes by tens of billions of dollars over nearly two years.

Beyond institutional matters, ASIC also criticizes ANZ for repeated failures in its retail operations, including ignoring hundreds of customer hardship notices, misrepresenting savings interest rates, failing to pay promised interest, and neglecting to refund fees for deceased customers or respond to estate inquiries in a timely manner.

The penalties being considered by the Federal Court are substantial, with $125 million for institutional and market misconduct—including a record $80 million for unconscionable conduct—and $115 million for retail violations. ASIC Chair Joe Longo highlighted that these are the largest penalties ever announced by the regulator against a single entity, reflecting the severity and frequency of ANZ’s breaches and the vulnerable position it placed its customers in. ASIC also pointed to fundamental problems with the bank’s risk and compliance culture, calling for urgent attention from its board and executives.

ANZ chairman Paul O’Sullivan acknowledged the bank’s failings, apologizing to affected customers and confirming that corrective actions have been taken, including holding executives accountable. Since 2016, ASIC has initiated eleven civil penalty proceedings against ANZ, with proposed and ordered penalties exceeding $310 million. Deputy Chair Sarah Court emphasized that ANZ, as one of Australia’s largest banks, fell short of basic obligations, including correctly paying interest, demonstrating systemic weaknesses across multiple divisions and levels of the organization.