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ASIC alleges that National Australia Bank paid A$1M in commission to introducers

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ASIC alleges that National Australia Bank paid A$1M in commission to introducers

National Australia Bank Ltd. allegedly paid A$1 million in commissions to unlicensed home loan "introducers," The Sydney Morning Herald reported, citing a court document.

A document filed in the Federal Court offers new details on how much NAB paid to introducers, or people who are paid a commission for referring customers to the bank. The document filed by the Australian Securities and Investments Commission shows that the commissions are slightly more than A$1 million across 297 loans.

ASIC is suing the bank over the lender's introducer scheme. The regulator alleges that the introducers provided documents including completed loan applications, tax returns and even false payslips, despite regulations only allowing them to pass on clients' name and contact details.

The alleged breaches could cost the bank a maximum penalty of A$1.7 million to A$1.8 million per breach, or a total maximum penalty of more than A$500 million.

NAB formally closed its introducer scheme in October.