On Monday, Australia's Commonwealth Bank has issued a statement saying that it will pay a $700m (£400m; $530m) fine for breaching anti-money laundering and counter-terror financing laws in the country.
The scandal relates to the 53,000 suspect transactions that the bank did not immediately report to authorities.
It was said that last year, Australia's financial intelligence agency accused the lender of "serious and systemic" law breaches.
If a court accepts the fine, it will be deemed as the largest civil penalty in Australian corporate history.
The bank, Australia's largest lender, said it would also cover A$2.5m in legal fees accrued by investigators.
"While not deliberate, we fully appreciate the seriousness of the mistakes we made," chief executive Matt Comyn said on Monday.
Australia's scandal-plagued financial sector is at the center of a national inquiry into misconduct.
On the other hand, Commonwealth Bank and intelligence agency Australian Transaction Reports and Analysis Centre (Austrac) agreed to the fine following court-ordered mediation.
Most of the breaches related to the bank's deposit machines, which could accept up to A$20,000 in cash at a time, anonymously if the person depositing was not a Commonwealth customer.
However, the bank failed to meet deadlines for reporting transactions over the legal threshold of A$10,000, according to Austrac.
Commonwealth Bank said that the breaches were due to a coding error, which meant that the machines failed to automatically report the transactions.
However, on June 4, 2018, Austrac said the settlement agreement showed that such breaches would not be tolerated.
"This [corporate behavior] has real impacts on the everyday lives of Australians and puts the community at risk by increasing opportunities for terrorists to support attacks here and overseas, and enabling organized crime groups to peddle drugs to our families and friends," said chief executive Nicole Rose.
In addition, both parties will now return to the Federal Court of Australia to seek formal approval.
Australia's banking and financial services sector has been rocked by a series of scandals over the last decade.
In December, Prime Minister Malcolm Turnbull established a royal commission inquiry to investigate the scale of wrongdoing.
Among allegations to hit Commonwealth Bank, the inquiry heard that the lender had collected fees from customers it knew had died.
The missing bank records of more than 20 million prople
The lender has also been investigated over whether it adequately informed shareholders about all potential liabilities related to the anti-money laundering case.
Former chief executive Ian Narev brought forward his retirement last year as the bank faced pressure over the scandal.
