CBA'S ALLEGED BREACHES UNTANGLED:
WHAT YOU NEED TO KNOW:
* CBA has been accused by AUSTRAC of 53,700 breaches of laws put in place to combat money laundering and terrorism financing
* Its shares closed 3.9 per cent lower on Friday, dragging its market value down $5.5 billion to around $139.6 billion, but recovered to be up 1.1 per cent to $81.60 at noon on Monday
* The allegations come after gaming giant Tabcorp paid $45 million to settle a money-laundering case with AUSTRAC in February
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ACCUSATIONS:
* Failed to assess the money laundering and terrorism financing risk of intelligent deposit machines (IDMs) before rolling them out in 2012
* Only took its first steps to assess the risks in mid-2015
* Failed to provide on-time reports of more than 53,500 transactions through IDMs of $10,000 or more, totalling $625 million
* Failed to report suspicious matters involving $77 million worth of transactions, either on time or at all
* Failed to monitor its customers even after suspected money laundering had been brought to the lender's attention
PENALTIES:
* Faces a possible maximum penalty of $18 million for each contravention, if found guilty
HOW CBA SEES IT:
* It will file a statement of defence
* Blames late transaction reporting on a coding error following a software update to its IDMs in late 2012, which was fixed within a month of discovery in 2015
* In relation to approximately 53,000 on-time transaction reports, CBA argues it should be liable for a single contravention of the anti-money laundering and counter-terrorism laws
* Acknowledges it needed to be more vigilant in the area of financial crime and anti-money laundering
