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

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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.The Conversation

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.

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Asim Munir appointed Pakistan’s first Chief of Defence Forces, to serve 5-year term

Field Marshal Asim Munir has been appointed Pakistan’s first Chief of Defence Forces, consolidating top military authority under a new constitutional amendment.

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Pakistan has named Field Marshal Syed Asim Munir as its first Chief of Defence Forces (CDF), marking a major restructuring in the country’s military command. The appointment was approved by President Asif Ali Zardari following a formal recommendation from Prime Minister Shehbaz Sharif.

Munir to hold dual charge as COAS and CDF

According to the President’s office, Munir will serve concurrently as Chief of the Army Staff (COAS) and Chief of Defence Forces for a five-year tenure. The creation of the CDF role — introduced under the 27th Constitutional Amendment — aims to centralise top-level military authority.

This decision comes after days of speculation due to delays in issuing the official notification, which was originally expected on November 29, the day Munir’s previous three-year term as army chief ended.

Former Indian security official Tilak Devasher had earlier commented to media that the Prime Minister appeared to be avoiding issuing the notification, leading to confusion within Pakistan’s military command structure.

Zardari also approves extension for Air Chief

Alongside Munir’s elevation, President Zardari approved a two-year service extension for Air Chief Marshal Zaheer Ahmad Babar Sidhu, effective from March 2026. The President extended his best wishes to both officers.

Munir, promoted to Field Marshal earlier this year, becomes only the second military officer in Pakistan’s history to hold this rank — the first being Gen. Ayub Khan.

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Imran Khan accuses Asim Munir of mental torture, says sister after rare jail meeting

Imran Khan has alleged “mental torture” inside Adiala Jail, according to his sister who met him after weeks of blocked access. The family claims authorities are withholding information about his condition.

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Former Pakistan Prime Minister Imran Khan has alleged that he is being “mentally tortured” in prison and held General Asim Munir responsible for his continued isolation, according to his sister Dr Uzma Khanum, who met him inside Rawalpindi’s Adiala Jail for 20 minutes.

Sister says Khan “angry” over isolation

Dr Khanum told reporters that her brother is allowed out of his cell only briefly and has no means of communication with the outside world. She said Khan expressed anger over the conditions in which he is being held, stating he remains confined all day with no access to his family or party members.

She also said Imran Khan directly blamed General Asim Munir — now seen as Pakistan’s most powerful authority, having consolidated military control and secured lifetime immunity for top officials — for the treatment he is receiving in custody.

Meeting follows weeks of denied access

The rare meeting came after weeks of barred family visits, which fuelled speculation about Khan’s health. His sisters earlier claimed they were assaulted when they sought permission to meet him, while his sons publicly alleged that jail authorities were concealing “something irreversible” about his condition.

One of his sons, Kasim Khan, told media that despite a court order for weekly family meetings, they had no direct or verified contact.

Family members also said prison authorities repeatedly refused entry to Imran Khan’s personal doctor.

Rumours and protests intensify

Before Tuesday’s meeting, neither his relatives nor his Pakistan Tehreek-e-Insaf colleagues had seen him for over 25 days, triggering widespread rumours of his death — speculation that officials did not counter with proof of life even as pressure mounted on Prime Minister Shehbaz Sharif’s government.

PTI’s Senator Khurram Zeeshan claimed Khan was being kept in isolation to force him into leaving Pakistan and accused authorities of withholding photos or videos due to fears over his influence.

The situation has sparked protests across Islamabad and Rawalpindi, including demonstrations outside the Islamabad High Court.

In jail since August 2023

Imran Khan, the 72-year-old former cricketer and World Cup-winning captain, has been incarcerated since August 2023. Rumours about his wellbeing first circulated from social media accounts in Afghanistan, at a time when both countries have been locked in military tensions over a border dispute.

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Trump pledges permanent pause on migration from Third World countries in Thanksgiving message

US President Donald Trump declared that migration from all Third World countries will be permanently paused, criticising current immigration policies and announcing measures to remove non-citizens who he says do not benefit the US.

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US President Donald Trump has announced that he will “permanently pause migration from all Third World countries”, asserting that the move is necessary for the United States to “recover” and “heal”. His remarks were delivered in a Thanksgiving post, where he sharply criticised the Biden administration’s immigration policies and outlined sweeping measures aimed at restricting migration and removing non-citizens who, he says, do not contribute to the country.

Trump said he intends to reverse what he described as “illegal admissions”, end federal benefits for non-citizens, and strip citizenship from migrants who pose security concerns. He also reiterated plans to deport individuals he considers a “public charge” or “non-compatible with Western Civilization”.

The statement came shortly after two members of the National Guard were shot near the White House, an attack Trump called an “act of terror”.

One National Guard member dies after Washington shooting

Trump confirmed that Specialist Sarah Beckstrom, 20, one of the two West Virginia National Guard soldiers shot near Farragut West Metro station on Wednesday, died of her injuries. The ambush occurred while Trump was in Florida.

The alleged shooter was identified as Rahmanullah Lakanwal, a 29-year-old Afghan national who entered the US in September 2021, according to enforcement officials.

‘Reverse migration’ needed, says Trump

In his post, Trump said his actions aim to significantly reduce “illegal and disruptive populations”, adding that only “reverse migration” can address the current situation. He accused the Biden administration of admitting migrants through an “unauthorized and illegal” approval process.

Concluding his message, he wished Americans a Happy Thanksgiving but added that those who “hate, steal, murder, and destroy” would “not be here for long”.

Attacks on foreign populations and Minnesota officials

Trump also targeted Somali refugees in Minnesota, alleging that gangs from the community are creating fear on the streets. He accused the Minnesota Governor of failing to address the situation due to “fear or incompetence”.

He further criticised Ilhan Omar, accusing her of complaining about the US despite her origins in a “crime ridden” nation.

Comments on America’s foreign-born population

Citing Census estimates, Trump claimed that the US foreign-born population stood at 53 million, alleging that “most are on welfare” or come from “failed nations” or criminal backgrounds. He said American citizens continue to support this population despite personal discomfort.

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