Australia’s second-largest bank makes a strategic appointment.
The post NAB (ASX:NAB) hires former AUSTRAC CEO while under investigation appeared first on The Motley Fool Australia. –
It looks like National Australia Bank Ltd (ASX: NAB) is tipping its hat to the old saying: “If you can’t beat ’em, join ’em.” In reports circulating yesterday, NAB has made an eyebrow-raising new hire amid its investigation by financial watchdog AUSTRAC.
The Australian Financial Review reported that NAB has employed former AUSTRAC CEO Paul Jevtovic to spearhead compliance within the bank.
Bringing in the big guns
Between beefing up its secretive internal Project Apollo and making strategic hires, NAB looks to be upping the ante amid AUSTRAC’s formal investigations into the bank’s possible breaches of Australia’s anti-money laundering laws.
Reportedly, in September, Jevtovic will jump headfirst into compliance as NAB’s Executive Money Laundering and Reporting Officer.
Jevtovic served as CEO at AUSTRAC for two and a half years before finishing in April 2017. Since then, he’s been working for HSBC – originally as head of financial crime threat mitigation, before shifting to regional money laundering officer and head of financial crime.
While the timing is uncanny, ASX-listed NAB had reportedly been working on hiring Jevtovic for months.
Addressing NAB’s elephant in the accounts
No doubt NAB will be looking to tap the former AUSTRAC CEO’s knowledge of financial crime mitigation. It’s an area Australia’s second-largest bank has been grappling with over the years.
Sources have claimed NAB is working with technology more than 20 years old. It’s further alleged analysts are sorting through bank statements manually to determine suspicious activity.
Although AUSTRAC is not considering civil proceedings against the bank at this stage, the “serious concerns” of potential breaches of anti-money laundering and counter-terrorism financing legislation still linger.
In the official letter to NAB, AUSTRAC said:
In particular, the seriousness of self-disclosed matters presented to AUSTRAC over a prolonged period combined with the accompanying closure rates is concerning.
NAB shares underperform big four peers
Shareholders will be disappointed to know NAB shares have underperformed against other members of the big four banks. While the banking sector has enjoyed a strong rebound over the past year, the NAB share price has been the laggard of the bunch.
National Australia Bank shares have climbed by around 32% in the past year. Meanwhile, Commonwealth Bank of Australia (ASX: CBA) has rallied by nearly 42%, Australia and New Zealand Banking Group Ltd (ASX: ANZ) has surged 38%, and Westpac Banking Corp (ASX: WBC) has climbed by 35%.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of May 24th 2021
Is the NAB (ASX:NAB) share price an opportunity today?
Here’s what I think of Coles, PointsBet, NAB, AMP: analyst
NAB (ASX:NAB) trying to combat crime loopholes with ‘Project Apollo’
Why ‘value’ and ‘growth’ share categories are meaningless
Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.