WBC - Westpac

[Scrunch]

I have an AUD account with HSBC and it appears to be very dormant as in little ability to do anything other than to hold AUD.

I have found the best way to deal with Australian shares has been to open up a NAB bank account and corresponding NABTrade share account when on holiday in Australia. It's cheaper to buy ASX shares and there's an AUD bank account for the AUD dividends and you get access to BPAY. It was very easy to open and very easy to operate online. Both are highly recommended.

Thank you. I'll need to do something like that next time I'm over the there.

[ratkin]

What are the best solutions NZ based traders have found to making AUD BPAY based payments?

Westpac's SSP at A$25.32 looks like paying by BPAY will be the most effective, and also the lowest chance of something going missing - I don't like posting, or even using a courier for large cheques hoping they get there!!

I've recently shifted to banking with HSBC and am considering opening an AUD account with them. I'm however unsure if an AUD account through the multi-currency element of the NZ platform of HSBC will enable BPAY payments. Do I need to go one step further and open a HSBC account through the Australian element of HSBC that would then obviously have BPAY enabled?

Anyone else been through this loop to know what works?

do not know about HSBC but it is very easy with ASB securities, just have to email throug any documents you want paying by bpay and the ASB broker puts it through from your cash management account

[Joshuatree]

FWIW my broker is reccoing not taking up the offer, outlook and margins for the big banks coming under pressure.

[airedale]

Hi Josh, I am reminded of a quote from Jesse livermore "if you buy on Smith,s tip, then you should sell on Smith,s tip.
My Mr Smith has buy tip on WBC . But thanks for your tip.😊

[Joshuatree]

Hi Josh, I am reminded of a quote from Jesse livermore "if you buy on Smith,s tip, then you should sell on Smith,s tip.
My Mr Smith has buy tip on WBC . But thanks for your tip.

Try a few years then,

[Bobdn]

https://www.smh.com.au/business/comp...20-p53c8o.html

Share price rapidly heading closer to $25.32 AUD. At least people don't have to fret if they miss out on their allocation from the share purchase plan - might end up cheaper buying off market.

This happened with the ANZ capital raise a few years back. I missed on my allocation of shares because I wrote a NZ cheque for what I thought was NZ shares. I think the price on offer was round $29? Can't recall. Next minute, the share price was down to $24. Being a bit slow definitely has its advantages. Sometimes the best course of action is to stand still and do nothing.

I use to feel envious about the smart money getting first dibs on this sort of stuff but not anymore.

[peat]

i dont quite see how you can associate the banker with the crime. Sure they broke AML laws but they didnt do pedo.
Are reserve banks (issuers of coin and notes) responsible for drug deals that go on with their cash. ?

[Snoopy]

i dont quite see how you can associate the banker with the crime. Sure they broke AML laws but they didnt do pedo.
Are reserve banks (issuers of coin and notes) responsible for drug deals that go on with their cash. ?

Bankers know a lot about their customers and their spending habits. Some say they can identify if your bankcard and security code is stolen by flagging as few as two to three transactions. Banks also have anti-money laundering responsibilities and are required to look out for proceeds of crime. I guess some banks take their responsibilities more seriously than other banks. It appears only Westpac facilitate the funding of Pedophile rings on a large scale. Other banks put Children above profit. I wonder if Ron Brierley banks with Westpac?

SNOOPY

[dabsman]

Bankers cant - algorithms can. A banker cant tell if 10,000 pesos is send to pay for abuse or to help a partners family back in the Philippines. AML doesnt help either to be fair

[Snoopy]

'The bank that may have facilitated pedophiles'

doesn't sound like a great marketing campaign line.

AUSTRAC (The Australian Transaction Reports and Analysis Centre) is investigating and

"Any enforcement action against Westpac may include civil penalty proceedings and result in the payment of a significant financial penalty which Westpac is currently unable to reliable estimate." (AR2019 p255)

Bankers know a lot about their customers and their spending habits. Some say they can identify if your bankcard and security code is stolen by flagging as few as two to three transactions. Banks also have anti-money laundering responsibilities and are required to look out for proceeds of crime. I guess some banks take their responsibilities more seriously than other banks. It appears only Westpac facilitate the funding of Paedophile rings on a large scale. Other banks put Children above profit.

The 24th November 2019 Westpac press release indicates that Westpac still expect to be fined, for not having the necessary checks on some accounts. However they have rolled out the following $54m dollars worth of 'good corporate citizen' measures:

-----

1/ Funding for the International Justice Mission (IJM): Westpac will match IJM's current level of funding, investing $18 million over three years to tackle Online Sexual Exploitation of Children (OSEC) in the Philippines. This will enable IJM to expand on-the-ground initiatives in Southeast Asia to help end child exploitation.

2/ Funding for SaferKids: Westpac will match the Australian Government's current level of funding for its SaferKids partnership with Save the Children, UNICEF and The Asia Foundation, investing $6 million over six years to raise awareness of Online Sexual Exploitation of Children (OSEC) and support programs to protect children in the Philippines.

3/ Prevention: Westpac will seek the guidance of industry experts, through the convening of an expert advisory roundtable, to develop a program of actions to support the prevention of online child exploitation. Westpac will provide funding of up to $10 million per year for three years to implement these recommendations

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In house,

1/ Westpac have closed their "Westpac Australasian Cash Management Product" and "LitePay international funds transfer system". These were two platforms where funds could be transferred with little accountability.

2/ Westpac intend to hire an additional 200 people to add to their financial crime resourcing team. This team has already been boosted by 325, to 750 people over the last three years.

3/ Westpac will invest $25 million to improve cross-border and cross-industry data sharing and analysis to better support regulators and authorities to fight financial crime

Those financial commitments add up to $79m, excluding Westpac's own incremental internal costs.

The 25th November 2019 Westpac press release contains more details on Westpac's costs for the full support of the anti-pedophile program:

"Westpac has made a number of commitments including to improve its financial crime program, support industry initiatives to enhance financial crime monitoring and provide additional support and resources to organisations that are working to eradicate child exploitation. We estimate these commitments will increase expenses by up to $80 million (pre tax) in FY20 when the majority will be incurred or provided for. These expenses will be included in cash earnings and treated as notable items."

The 'notable items' comment is made in relation to the whole thing being a 'non-operational matter." I would not include it as part of 'normalised earnings'.

I am not sure what kind of fine Westpac may expect as a result of their prior inactions, to be offset by their subsequent make good efforts at least in a judge's eye. I don't think they will get away with a wet bus ticket though. But given that Westpac was a conduit for crime rather than doing the crime themselves, I wonder if it will be somewhat in the order of $20m? That would see Westpac face a total cost of $80m + $20m = $100m for the whole matter. $100m sounds like a good 'headline punishment' to face. Anyone know how this figure compares with existing court precedents?

These 'good corporate citizen' measure responses will form part of the FY2020 'one off expense' picture.

SNOOPY