One of Asia's leading anti-money laundering experts believes there could be significant fallout for other Australian banks from the CBA compliance scandal. Professor Milind Sathye from the University of Canberra expects Asian regulators and law enforcement agencies to audit the anti-money laundering records of other Australian banks in light of CBA's failures."Australian banks that have branch licences throughout Asia are likely to come under greater scrutiny from anti-money laundering agencies to ensure they have met their obligations to report suspicious transactions," Sathye said.While Austrac's acting chief executive Peter Clark recently told a federal parliamentary committee that it had not identified other reporting breaches in the domestic banking system, Asian anti-money laundering watchdogs have not commented on the compliance records of Australian banks operating in the region.Each of the four major Australian banks have branch licences in Hong Kong where Austrac has alleged a string of crime syndicates laundered ill-gotten cash through CBA accounts.Westpac and ANZ offer personal banking services to resident and non-resident Hong Kong customers, including multi-currency deposit accounts and money transfers.ANZ also markets full banking service in the Philippines, another jurisdiction renowned for money-laundering.Sathye, who worked as a AML training consultant to CBA in 2007 and currently advises several Chinese banks, also thinks that Austrac's court action against the country's largest bank could motivate politicians to introduce criminal penalties on senior executives at banks that commit systemic breaches of money laundering laws."We need to have some kind of criminal penalties aimed at top management of the banks for not complying with anti-money laundering laws," he said."In my opinion such sanctions would change current behaviours."Despite the massive fines incurred by HSBC and Barclays earlier this decade for breaches of global money laundering laws, profit considerations still seem to override all other considerations in the world's largest banks."South Australian independent senator Nick Xenophon and other cross-bench parliamentarians last month called for jail terms for chief executives and directors of banks that commit systemic breaches of money laundering laws."If you want to have a cultural shift in financial institutions that are doing the wrong thing, there is nothing like a jail term for their chief executive and board of directors to sharpen their thinking," he said.Sathye also highlighted the failure of some regulators around the world, including the Australian Prudential Regulation Authority, to effectively monitor risk management practices within the banks they supervise."The relationship between APRA and the big banks is so cosy - it seems to reflect an attitude that things will always be alright," he said."There's a complacency in APRA."CBA is at risk of becoming a litmus test in the Asian region for anti-money laundering regulators to demonstrate their brawn against non-compliance.A research paper sent to corporate clients including CBA by the Hong Kong office of legal firm Herbert Smith Freehills, noted the intensity with which the Hong Kong Monetary Authority and other financial regulators were clamping down on non-compliant institutions."The recent spate of disciplinary actions illustrates the Securities and Futures Commission and the HKMA's continued focus on ensuring