Ian Narev, the CEO of Commonwealth Bank of Australia (CBA), is set to retire by the end of the 2018 financial year following a money-laundering scandal at the bank.
CBA chairman Catherine Livingstone said that the precise timing of Narev’s retirement will be based on the “outcome of an ongoing comprehensive internal and external search process”.
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By GlobalDataLivingstone declined to provide any other details regarding the retirement of Narev, who has been heading the bank since 2011. She did not link the decision to the latest scandal, only saying that the announcement will “provide certainty for the business”.
“Succession planning is an ongoing process at all levels of the Bank. In discussions with Ian we have also agreed it is important for the business that we deal with the speculation and questions about his tenure,” Livingstone noted.
Earlier this month, the bank was accused by Australian Transaction Reports and Analysis Centre (AUSTRAC) of breaching Anti-Money Laundering and Counter-Terrorism Financing Act over 53,700 times, mainly associated with intelligent deposit machines (IDMs). AUSTRAC alleged that the bank failed to make an anti-money-laundering risk assessment before launching the ATMs and failed to report suspicious transactions.
Meanwhile, CBA’s annual report revealed a reduction in Narev’s pay packet to $5.5m from $12.3m in the previous year.
