The Commonwealth Bank of Australia faces a potential investor class action over its disclosure of more than 53,000 alleged breaches of anti-money laundering laws.

Plaintiff law firm Maurice Blackburn, backed by listed litigation funder IMF Bentham, said it would investigate a potential class action on behalf of Commonwealth Bank of Australia (CBA) shareholders, citing the hit to the bank's share price.

Also each violation of the Anti-Money Laundering and Counter-Terrorism Financing Act carries a maximum penalty of $18 million, meaning CBA could face a huge fine.

Technology at Fault

Australian authorities are looking into so-called intelligent, or automated, deposit machines at CBA which failed to register warnings of potential laundering.

The bank has maintained that an algorithm is to blame for the lapse.

Since finews.asia reported the original article on the action from the financial intelligence regulatory agency (AUSTRAC) CBA's chief executive Ian Narev has seen his bonus payment cut to zero and he will be relieved of his CEO duties in the near future. 

Hong Kong Connection

According to Australian media reports, some of the funds quickly made their way from CBA to Hong Kong, leading the regulator there to open its own investigation.

The Hong Kong Monetary Authority conceded that it is watching the case for potential fallout in its financial market.