Latest world news

Westpac’s scandal highlights a system failing to deter corporate wrongdoing

Published

6 years ago

November 25, 2019

Elise Bant, University of Melbourne and Jeannie Marie Paterson, University of Melbourne

The news that Australia’s anti money-laundering regulator has accused Westpac of breaching the law on 23 million occasions points to the prospect that powerful members of corporate Australia are still behaving badly.

This despite the clear lessons offered by the Banking Royal Commission.

Regulators are still struggling to find the right balance between pursuing wrongdoers through the courts – an admittedly costly, time-consuming and highly risky business – and finding other means to punish and deter misconduct.

Australia’s anti money-laundering regulator, AUSTRAC, is seeking penalties against Westpac in the Federal Court.

Each of the bank’s alleged contraventions attracts a civil penalty of up to A$21 million. In theory, that could equate to a fine in the region of A$391 trillion.
In practice, it is likely to be a mere fraction of that sum. Commonwealth Bank breached anti-money-laundering laws and faced a theoretical maximum fine of nearly A$1 trillion, but settled for A$700 million.

No doubt the reality that companies can minimise penalties is a factor in why breaches continue.

This impression is reinforced by revelations last week that financial services company AMP continued to charge fees to its dead clients despite the shellacking it received at the hands of the royal commission.

Last month a Federal Court judge refused to approve a A$75 million fine agreed between the Australian Competition and Consumer Commission and Volkswagen to settle litigation over the car company’s conduct in cheating emissions tests for diesel vehicles. The judge was reported to be “outraged” by the settlement, which meant Volkswagen did not admit liability for its misconduct.

The A$75 million is a drop in the ocean of the likely profits obtained from this systemic wrongdoing and pales into insignificance next to fines imposed in other countries.

Proposals for law reform

So business as usual, right?

Maybe not for long. The Australian Law Reform Commission has just released a discussion paper on corporate criminal responsibility.

It points out that effective punishment and deterrence of serious criminal and civil misconduct by corporations in Australia is undermined by a combination of factors.

These include a confusing and inconsistent web of laws governing the circumstances in which conduct is “attributed” to the company. Similar problems of inconsistency arguably also undermine other key areas, such as efforts to give courts the power to impose hefty fines based on the profits obtained by the wrongdoing

The repeated attempts to come up with new and more effective attribution rules arise because corporate wrongdoers are “artificial people”. For centuries, courts and parliaments have struggled with how to make them pay for what is done by their human managers, employees and (both human and corporate) agents. All too often a company’s directors disclaim all knowledge of the wrongdoing.

To fix this, the ALRC recommends having one single method to attribute responsibility. It builds on the attribution rule first developed in the Trade Practices Act 1974 (Cth) and now used, in various forms, across various statutes.

The ALRC proposes that the conduct and state of mind of any “associates” (whether natural individuals or other corporations) acting on behalf of the corporation should be attributable to the corporation.

This goes well beyond the traditional focus on directors and senior managers and would provide some welcome consistency in the law.

Importantly, serious criminal and civil breaches that require proof of a dishonest or highly culpable corporate “state of mind” can be satisfied either by proving the state of mind of the “associate” or that the company “authorised or permitted” the conduct.

A “due diligence” defence would protect the corporation from liability where the misconduct was truly attributable to rogue “bad apples” in an otherwise a well-run organisation. There would be no protection in the case of widespread “system errors” and “administrative failures” so pathetically admitted during the royal commission.

The ALRC also proposes that senior officers be liable for the conduct of corporations where they are in “a position to influence the relevant conduct and failed to take reasonable steps to prevent a contravention or offence”.

This would place the onus on those in a position to change egregious corporate practices to show they took reasonable steps to do so.

Removing the penalty ceiling

These recommendations, if adopted could prove a game-changer for regulators asking themselves “why not litigate?” and corporations used to managing the fall-out of their misconduct as simply a “cost of business”.

The ALRC’s recommendations that the criminal and civil penalties should be enough to ensure corporations don’t profit from wrongdoing will be welcomed by many. Some academics have gone further and argued that the law should be changed to make it clear that civil, not just criminal penalties, should be set at a level that is effective to punish serious wrongdoing.

The ALRC also raises the question whether current limits on penalties should be removed. The Westpac scenario might be just the kind of case to make that option attractive.

Elise Bant, Professor of Law, University of Melbourne and Jeannie Marie Paterson, Professor of Law, University of Melbourne

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Latest world news

Bangladesh’s BNP seeks stronger India ties based on mutual respect

Bangladesh’s new BNP-led government has signalled a diplomatic reset with India, emphasising mutual respect, trade and broader people-to-people engagement.

Published

13 hours ago

February 14, 2026

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The newly elected government in Bangladesh, led by Tarique Rahman and the Bangladesh Nationalist Party (BNP), has expressed its intent to strengthen ties with India through mutual respect, trade and deeper people-to-people engagement.

Humayun Kabir, who oversees international relations for Rahman and is expected to play a key role in the new administration, said the focus will be on building stronger cooperation between citizens of both countries rather than limiting ties to official exchanges.

He indicated that India would be among the countries the new leadership plans to visit, though no specific timeline was shared. “Obviously there are certain domestic priorities and then international engagements. Of course India will be one of the countries that we will visit among other countries in the region,” Kabir said in an interaction with media.

Expanding engagement beyond official visits

Kabir underlined the importance of expanding the scope of bilateral relations beyond high-level diplomatic visits. While acknowledging that reciprocal visits between senior officials are a normal feature of ties between neighbouring nations, he stressed the need to widen engagement across broader sections of society.

He said the BNP-led government intends to deepen cooperation through trade and investment while strengthening grassroots-level connections.

On regional balance and Pakistan ties

Responding to questions about Bangladesh’s approach towards Pakistan during the interim administration led by Muhammad Yunus, Kabir said Dhaka’s foreign policy would not be guided by choosing sides in regional tensions.

“It’s normal and we need to normalise relations in the region and regardless of the tensions between India and Pakistan, for us it is not to take sides on this issue,” he said, adding that relations would be shaped by mutual respect and national interest.

Kabir also criticised former prime minister Sheikh Hasina, alleging that her foreign policy approach was perceived as one-sided in its engagement with India. He said the new government seeks to avoid what he described as a country-centric or country-dependent model of diplomacy.

New Delhi’s cautious optimism

From India’s perspective, the decisive electoral outcome in Bangladesh, which delivered a landslide to the BNP, marks the end of the interim phase and opens the possibility of a diplomatic reset.

Indian officials are said to be cautiously optimistic about engaging with Rahman’s leadership. While acknowledging past differences with BNP governments, New Delhi believes the new administration may adopt a pragmatic approach shaped by economic priorities and regional stability concerns.

Latest world news

Finland PM Petteri Orpo to attend India AI Impact Summit, meet PM Modi

Finland Prime Minister Petteri Orpo will visit India from February 17 to 20 to attend the AI Impact Summit and hold bilateral talks with PM Narendra Modi.

Published

21 hours ago

February 14, 2026

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Petteri Orpo will travel to India from February 17 to 20 to participate in the India AI Impact Summit and hold bilateral discussions with Narendra Modi.

Prime Minister Orpo is scheduled to meet PM Modi on February 18. He will also attend the India AI Impact Summit on February 19, which is being hosted in New Delhi.

The Finnish Prime Minister is accompanied by a business delegation comprising representatives of 22 Finnish companies. According to an official release, the visit aims to strengthen cooperation between the two countries, particularly in digitalisation and sustainability.

Focus on AI governance and innovation

The India AI Impact Summit, being held from February 16 to 20 at Bharat Mandapam, will bring together Heads of State and Government, international organisations, AI experts and leading companies from across the globe.

The summit is designed to promote a shared understanding of global AI governance principles and foster international cooperation. Prime Minister Orpo had also taken part in the AI Action Summit in Paris in 2025.

“At the summit, we will highlight Finland’s strengths in the fields of AI policy and innovation. Finland has world-class expertise in AI and the potential to lead the way in its use. At the same time, we will also promote the safe and responsible use of AI,” Orpo said, according to the release.

He noted that geopolitical and economic competition is intensifying, underlining the need for Finland to remain active in global technology discussions. He also emphasised cooperation with like-minded countries while seeking broader international consensus.

During the summit, Orpo will deliver Finland’s national address, visit country pavilions and participate in side events organised by the Finnish Innovation Fund Sitra and National Association of Software and Service Companies. The programme also includes a dinner hosted by PM Modi and other high-level engagements.

Strategic partnership and trade opportunities

The release highlighted India’s growing global role and described bilateral ties as strong and expanding. The inauguration of Finland’s new Consulate General in Mumbai in 2022 was cited as a significant step in strengthening engagement.

Orpo said Finland aims to deepen cooperation with India in the areas of digitalisation and sustainability, reinforcing the new strategic partnership between the two nations.

He also referred to the conclusion of negotiations on the EU-India Free Trade Agreement on January 27, 2026. Talks on the agreement had been underway since 2007, with some interruptions. The pact is expected to improve access for European companies to India’s expanding market and enhance the broader EU-India partnership.

Summit structure and agenda

The India AI Impact Summit will revolve around three pillars — People, Planet and Progress. Discussions will focus on employment and skilling, sustainable and energy-efficient AI, and economic as well as social development.

Seven thematic working groups, co-chaired by representatives from the Global North and Global South, will present deliverables such as proposals for AI Commons, trusted AI tools, shared compute infrastructure and sector-specific AI use case compendiums.

The event will also address AI safety, governance, ethical use, data protection and India’s approach to sovereign AI, including the development of indigenous foundation models for strategic sectors.

An AI Impact Expo will showcase practical AI applications in healthcare, agriculture, education, climate action, energy efficiency and accessibility. The summit will further spotlight national skilling initiatives, including “Yuva AI for All”, a free course aimed at building basic AI awareness among students and professionals.

Latest Politics News

Tarique Rahman-led BNP set for landslide win in Bangladesh elections

BNP led by Tarique Rahman has crossed the majority mark in Bangladesh’s national elections, with projections suggesting a two-thirds majority. Jamaat has conceded defeat.

Published

2 days ago

February 13, 2026

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The Bangladesh Nationalist Party (BNP), led by Tarique Rahman, is heading towards a decisive victory in Bangladesh’s national elections, with projections indicating a clear parliamentary majority.

Early media projections at 8:00 am local time suggested that the BNP had comfortably crossed the 150-seat mark required to form the government in the 300-member parliament. One projection placed the party at 212 seats, putting it well on course for a two-thirds majority.

The BNP has already declared that it is prepared to form the next government after securing what it described as a majority mandate from voters.

Meanwhile, the Islamist-led alliance headed by Shafiqur Rahman of Jamaat-e-Islami was projected to win 70 seats. Although a significant improvement compared to its previous performance, the tally fell short of its expectations. Shafiqur Rahman conceded defeat and said his party would avoid confrontational opposition politics, adding that it would engage in “positive politics.”

Final results awaited, US extends congratulations

The Election Commission is yet to announce the final results for 299 constituencies where voting took place. An additional 50 seats reserved for women will be allocated based on party lists.

Even before the official declaration, the United States embassy in Dhaka congratulated Tarique Rahman and the BNP, describing the outcome as a “historic victory.”

Political transition under way

Bangladesh’s interim leader Muhammad Yunus is expected to step down once the new government assumes office. The Nobel Peace Prize winner has led the country since the ouster of Sheikh Hasina in August 2024 following a mass student-led uprising.

Yunus’s administration had barred the Awami League from contesting the elections by suspending its registration.

This election marked the first in decades without the participation of two dominant political figures — Sheikh Hasina and former prime minister Khaleda Zia, who passed away in December last year.

After nearly 17 years in exile, Tarique Rahman, 60, returned to Bangladesh following his mother Khaleda Zia’s death and quickly emerged as the frontrunner for the prime minister’s post.

Referendum on reforms held alongside polls

Voters also participated in a referendum on the July National Charter, a reform package negotiated by the Yunus-led interim administration and multiple political parties. The proposals include limiting prime ministers to two terms, forming an upper house of parliament, and restoring a caretaker government system to oversee elections for 90 days to ensure neutrality.

Sheikh Hasina criticised the election process, calling it “deceptive” and alleging low voter turnout. In a statement, she demanded cancellation of what she described as an “illegal and unconstitutional election” and sought Yunus’s resignation.

India watching developments closely

India is closely monitoring the situation due to its strategic and diplomatic interests in the region. Following recent political shifts in Dhaka and concerns over minority safety, New Delhi has emphasised that it will assess the mandate once results are officially declared.

When asked about the polls, MEA spokesperson Randhir Jaiswal said India would wait for the final outcome before commenting further.

With final results expected soon, Bangladesh appears set for a major political transition, with the BNP poised to return to power in a significant comeback.