The Commonwealth Bank has announced that its chief executive Ian Narev will retire by the end of the current financial year. It is the third major public-relations scandal Narev, 50, has faced during his nearly six years in the job.
The bank's board of directors last week axed short term bonuses for Narev and his senior executives.
This followed an investigation by the the financial intelligence and regulatory agency, AUSTRAC, into alleged breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act involving combined cash deposits of $624.7 million.
The "exact timing" of Mr Narev's departure will be "dependent on the outcome of an ongoing comprehensive internal and external search process", Ms Livingstone said.
Chairman Catherine Livingstone said in a statement the board was detailing its succession plan to "provide certainty for the business".
She said that succession planning has been an ongoing process for the board, with Mr Narev now in the role for nearly six years, but that the CEO and directors agreed it was important to end speculation about his future.
"Today's statement provides that clarity and will ensure he can continue to focus, as CEO, on successfully managing the business", she said.