Australia's Commonwealth Bank has said it will pay a A$700 million ($530m) fine for breaching anti-money laundering and counter-terror financing laws.
The scandal relates to 53,000 suspect transactions that the bank did not immediately report to authorities.
Last year, Australia's financial intelligence agency accused the lender of "serious and systemic" law breaches.
If a court approves the fine, it will be the largest civil penalty in Australian corporate history, according to a BBC report Monday.
The bank, Australia's largest lender, said it would also cover A$2.5 million 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 centre of a national inquiry into misconduct.
Undeclared deposits
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.
The bank failed to meet deadlines for reporting transactions over the legal threshold of A$10,000, according to Austrac.
Commonwealth Bank said the breaches were due to a coding error, which meant the machines failed to automatically report the transactions.
On Monday, Austrac said the settlement agreement showed that such breaches would not be tolerated.
"This [corporate behaviour] 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 organised crime groups to peddle drugs to our families and friends," said chief executive Nicole Rose.
Both parties will now return to the Federal Court of Australia to seek formal approval.