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Westpac's RAMS Financial Group has been fined USD 13 million for home loan misconduct involving falsified payslips and dealings with unlicensed mortgage operators. Between 2019 and 2023, the subsidiary failed to supervise representatives properly and did not ensure customers were protected from conflicts of interest. RAMS stopped issuing new loans last year and completed remediation in 2024. The penalty was already reflected in Westpac's 2025 half-year results. The case follows ongoing regulatory scrutiny of Australian banks, including ANZ's record AUD 240 million fine for multiple breaches.
Australia's Federal Court has imposed a USD 13 million penalty on RAMS Financial Group, a fully-owned subsidiary of Westpac, for widespread misconduct in arranging home loans. The misconduct included approving loans using falsified payslips, the Australian corporate regulator said. Advertisement
RAMS provided credit services primarily to first-time homebuyers and self-employed borrowers. Between mid-2019 and early 2023, it worked with unlicensed mortgage operators and failed to properly supervise its representatives, putting customers at potential risk due to conflicts of interest. The subsidiary had earlier admitted to these shortcomings and stopped issuing new home loans last year.
The case reflects ongoing scrutiny of Australia's banking and credit sector, which has been under close watch since a 2019 Royal Commission report uncovered governance failures and misconduct across banks, superannuation funds, and financial services. Recently, ANZ Group paid a record AUD 240 million penalty for multiple regulatory breaches, including unconscionable conduct in government bond deals and charging deceased customers.
ASIC's Deputy Chair, Sarah Court, stressed that financial institutions must follow legal obligations and protect consumers from harmful lending practices. A Westpac spokesperson confirmed that RAMS fully cooperated with ASIC during the investigation and completed all customer remediation in 2024. The penalty was provisioned and included in Westpac's 2025 half-year financial results.
The ruling highlights the importance of proper checks, licensing, and oversight in lending, and serves as a reminder that even major financial institutions are held accountable for governance and consumer protection failures.
Source Reuters
5th Jun, 2025
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