Latitude Financial broke the law 2.7 million times and was fined a whopping $1.50 per transgression, totalling $3.98 million. What’s the scam?
The scam isn’t just about how finance company executives get away with it as shareholders foot the bill; it’s the second time in four years that Latitude has been pinged for sending spam and ignoring regulations. In 2022, the fine was $1.5m for similar breaches. (Back then, Latitude was led by ex-Aussie Post boss, Ahmed Fahour, and the spamming was overshadowed by the hacking of its customer records, and how it was handled.)
Shareholders (ASX:LFS) don’t appear too worried, though, the share price dropping a mere 1% on the announcement of the fine imposed by ACMA (Australian Communications and Media Authority), while CEO Bob Belan took home $3.6m last year, a tidy 18% uplift on the previous year, the year of the spam.
The $3.98m fine pales into insignificance with the $700m fine Commonwealth Bank copped for its 53,750 breaches of anti-money laundering and counter-terrorism financing laws in 2018. At least that was $13,000 per breach, not just $1.50.
But rest assured, Latitude has learnt its lesson, announcing to the ASX that it will “engage an independent expert to confirm that its strengthened spam processes are operating compliantly.”
How about not engaging in spam at all?
Kim Wingerei is a businessman turned writer and commentator. He is passionate about free speech, human rights, democracy and the politics of change. Originally from Norway, Kim has lived in Australia for 30 years. Author of ‘Why Democracy is Broken – A Blueprint for Change’.