CBA shares tank on money laundering claims

CBA’s share price plummeted 3 per cent on 4 August and approximately $3.8 billion in value was lost following Thursday’s announcement from AUSTRAC that the financial intelligence and regulatory agency had launched civil action in the Federal Court against the major bank.

AUSTRAC has accused CBA of more than 53,000 contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 due to reporting failures relating to cash amounts exceeding $10,000 deposited through automatic teller machines.

CBA released the following statement on Friday in response to media reports regarding the civil proceedings:

“Commonwealth Bank of Australia notes the media coverage of the civil penalty proceedings initiated yesterday by AUSTRAC for alleged non-compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

"The matter is subject to court proceedings. We are currently reviewing AUSTRAC’s claim and will file a statement of defence. We will keep the market informed of any updates in compliance with our disclosure obligations.”

The news comes as the group prepares to released its full-year profit results next week.

[Related: CBA accused of money laundering breaches]