Commonwealth Bank chief Ian Narev to leave amid lender's money laundering woes

Ian Narev

Ian Narev, the chief executive of Commonwealth Bank, will step down from his post by the end of the 2018 financial year.

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"Today's statement provides that clarity and will ensure [Ian] can continue to focus, as chief executive on successfully managing the business".

"Consumers should not be sold products that provide little or no benefit, and banks should have processes in place that ensure this", Mr Kell said.

Australia's biggest bank has admitted failures costing staff and customers millions of dollars as the troubled lender faces legal action over alleged breaches of money laundering and terror financing laws.

Narev, aged 50, has been in the job since the end of 2011, bringing the bank to a record full year profit of nearly $10 billion, and paying out billions in dividends to shareholders during his tenure. Nevertheless, the "litany of shame" piles more trouble onto the bank at a time when it is defending itself against money-laundering allegations.

"This has been the basis of ongoing conversations between myself and Ian and the board since I became chair and there were conversations before that as you would expect given the length of his tenure", she said.

"Those are qualities we have in Ian, and those are qualities we would seek in his successor", Livingstone said.

In terms of the sale of Essential Super, the bank said it was in discussions with the corporate regulator after it expressed concern that some customers might have been given personal advice rather than general advice during the sale.

"Someone with a very strong moral compass because, in these roles, the right and wrong are clear but the judgement calls that have to be made along the way can be very challenging", Ms Livingstone said.

"We will be contacting the 36,000 current and former employees who are eligible for additional payments", CBA said in a statement.

The CBA annual report, published on Monday, showed Narev's pay dropped in 2016-17 to $5.7 million, down from $8.7 million the year before.

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