NO BONUSES FOR CEO IAN NAREV AND COMMBANK EXECS IN WAKE OF MONEY LAUNDERING SCANDAL

BONUSES for Commonwealth Bank CEO Ian Narev and senior executives have been cut to zero in the wake of the money laundering scandal that hit the bank last week.

As the Commonwealth Bank (ASX: CBA) moves into overdrive to repair its reputational damage, company chair Catherine Livingstone said the board had full confidence in Narev.

However, short-term incentives for the CEO and group executives will be slashed to nothing to demonstrate "collective accountability" for what the company is calling an "IT error".

The federal government's financial crime agency, AUSTRAC, launched proceedings in the Federal Court alleging CommBank engaged in 'serious' and systemic breaches of anti-money laundering and terrorism financing laws.

It's alleged the bank breached the law for a period of three years on more than 53,000 occasions and relates to its network of so-called 'intelligent' automated cash deposit machines (IDMs).

The IDMs used by the Commonwealth Bank accept deposits both by cash and by cheque and the transactions had a total value of $624million. Read more

Ben Hall - Business Insider Australia -  8 Aug 2017