The bank says it will not back down over the bank’s alleged role in the illegal settlement with the Government and will fight back against a new legal action that seeks to bar the regulator from accessing its database of customers’ accounts.
The Bank of Australia says it has not been told by the Financial Review what information the regulator is seeking, and it will defend its actions in court.
The bank’s actions were revealed in an email to the regulator by former head of financial institutions and the current head of the watchdog, Mark McGowan.
The Financial Review has been told that Mr McGowan’s accountant, Andrew Sohmer, was given access to Mr McGowen’s banking data by the regulator.
Mr Sohmed has said he did not access the bank data because he was a customer.
Mr McGawen said he had asked Mr Sohming to make the request after Mr McGawan said he was the subject of a financial audit.
“He said he knew I was a client, but I didn’t,” Mr McGwan said.
In the email, Mr McGawa said Mr Sohan’s “inappropriate” request to access the database was an “unacceptable breach of trust”.
“We take the matter very seriously and will be defending it vigorously,” Mr Gower said.
“The matter is now before the courts and the FCO is required to make a decision on the issue by the end of the year.”
Mr McGowan said the bank had “never breached any law” and he had never had a conversation with Mr Sogers about a bank database.
He said the “vast majority” of the database’s records were from the “big four” banks, and that the regulator had “an interest in protecting that data”.
In his statement, Mr Gowen said the data was “private” and there was “no need” to have access to it.
“[The] matter has been dealt with internally,” Mr Sohn said.
“We have no further comment to make.”
‘This is about trust’The FCO has been criticised for failing to properly inform banks about the potential for criminal conduct and Mr McGower said the investigation was “deeply flawed”.
Mr Gower told the Financial Report that the bank “must have known” the potential was there, and the regulator should have informed the banks about it.
“This is not a matter about trust, it’s about trust,” Mr Fogg said.
Mr Gawen added that the matter would not be resolved by any court proceedings.
But the FOC said in a statement that it was “committed to ensuring the integrity of the financial system”.
It said the regulator would seek the information of all banks about their data management.
Bank of Queensland managing director, Peter Faucher, said it was the bank that was in breach of the law and said it had not been informed of the potential criminal implications of its actions.
Under the Bank Act, the regulator can request information about customers’ account information if the regulator suspects a breach of banking laws.
This information can include a customer’s account number, date of birth, bank details, account type, and amount.
It can also include any account information relating to any transactions in the account.
However, Mr Fauchers told the FFC it was not necessary for the regulator to request the data, since it had been shared with other banks.
Read more about the scandal:Read more: The FOC will now investigate whether the bank breached the Banking Act and its regulatory role.
According to the FFA, the bank said it “has not been advised by the relevant authorities or any other public body” that the information it had was “publically available” and that there was no risk of its information being accessed by “any other person”.
FOC head of banking, Craig Kelly, said the agency would look at the data to determine if the bank was “clearly in breach”.
He told the Finance Report that he had not “received any evidence” that there had been a breach.
‘Banks have a responsibility’Mr McGawan told the Daily Telegraph the regulator’s action was “appropriate” and was in line with its responsibility to safeguard the banking system.
I think the evidence suggests that it’s the right thing to do,” he said.
Mr McGowens “very strong” position on the matter was reinforced by the fact that he is the current leader of the regulator and Mr Faggan has “no role” in the investigation.
Ms McGowan, who is the head of Queensland’s financial services regulator, said she believed the regulator was “doing the right things” by notifying banks about potential risks of the illegal settlements.
She said that the evidence showed the banks were “very clear” that they were not in breach.