Instances of "false witnessing" by financial advisers employed by National Australia Bank have been aired by the Finance Sector Union and Fairfax MediaThe FSU, in a posting to its website, said that two weeks ago, "Tim Steel, general manager NAB Financial Planning, invited staff to a teleconference placing the blame for systemic compliance issues arising from poor culture and leadership on individual employees."NAB employees, including Financial Planners and administrative staff, "have been given until the end of the month to self-report compliance breaches related to the witnessing of Nomination of Beneficiary forms," the union said. "Feedback indicates that it was standard practice in NAB until about a year ago for beneficiary nominations to be signed at outside appointments to be brought back to the office to be witnessed.  It was communicated internally that bank staff could be trusted and that's why this approach was ok."The FU said self-reporting "will result in a non-reversible amber gate, partial loss of bonus as well as a compliance record. "Under the proposal employees who do not self-report may be terminated if this compliance matter is subsequently identified."Fairfax Media reported over the weekend that NAB financial planning "became aware of instances of 'false witnessing' in November last year during a routine review of an adviser."Fairfax reports that "the breaches, which involve planners incorrectly witnessing documents in the absence of clients, could go back more than five years and involve people across its planning network.The FSU told its members: "NAB has advised that there are 17 identified cases but we think it's likely that there will be many more."The union, in a second posting at its website, said: "we know the banks are under a lot of pressure right now but it's becoming clear they're doing everything in their power to shift blame for systemic and cultural issues caused by poor leadership and culture on to employees."What really concerns us is that in all of this NAB has failed to consider how the findings of the recently released 'Sedgwick Review' could have contributed to this mess but have gone for the easy option, shifting the blame and financial penalties on to employees."The FSU said NAB watered down proposed sanctions."When determining the appropriate consequences to apply to self-reported breaches, all circumstances and any mitigating factors will be taken into consideration," the FSU said."That means consideration will be given to any direction or expectation from financial planners or senior staff members as to the completion of the form and as a guide, a reversible Amber Gate will be applied in circumstances where there are no other breaches by an employee."