ANZ Bank Australia has been fined $240 million by ATSIC for banking iregularities. Where will that money go and who gets corporate fines like this?

Response:

ANZ Bank has recently been fined $240 million by the Australian Securities and Investments Commission (ASIC) for various banking irregularities, including “unconscionable conduct” in bond trading and other misconduct. Here’s how the money from corporate fines typically flows:

Allocation of Corporate Fines

1. Government Revenue: Corporate fines usually go to the government’s revenue. In Australia, these penalties are often paid into the general revenue of the federal or state government, which can be used for public services or other governmental needs.
2. Consumer Compensation: Sometimes, part of the fine may be designated for consumer compensation or restitution. In cases where customers have been harmed, there might be funds allocated specifically for compensating those individuals.
3. Regulatory Bodies: A portion of fines may also fund the regulatory bodies involved in enforcing compliance and consumer protection, helping them to carry out their duties more effectively.

Who Gets the Fines?

• Government Departments: The collected fines typically enrich the treasury.
• Public Services: Fines can support various public services or programs that the government deems necessary.

For more detailed information regarding this specific case, you can refer to the following sources:

• ASIC – ANZ admits widespread misconduct
• ABC News – ANZ faces record $240m penalty
• The Guardian – ANZ Bank pays record fine

I wonder whether the disbursement by government is programmed – or is the scattergun method the preferred allocation policy?