Student who splurged $5 million after bank error won't be charged

An Australian student who spent almost NZ$5 million after a bank error has had charges against her dropped.

Christine Jiaxin Lee, 21, had accidentally been given an unlimited overdraft by Westpac bank in 2012.

Ms Lee allegedly discovered the unlimited overdraft in 2014 and went on a AU$4.6 million (NZ$5 million) spending spree, including spending more than AU$200,000 (NZ$220,000) at Dior in Sydney in a single day.

A Westpac staff member noticed the error in April 2015 and in 2016, she was arrested after boarding a flight to Malaysia.

She was originally charged with dishonestly obtaining financial advantage by deception and knowingly dealing with the proceeds of crime, according to the Daily Mail Australia.

Ms Lee claimed she believed the money had been transferred to her by her parents.

Police seized a number of valuables from Ms Lee's apartment, but now that charges have been dropped it's unclear whether they will be returned.