In handing down his judgment in Sydney on Wednesday morning,Justice David Yates said crime syndicates had used a system flaw in the bank's Intelligent Deposit Machines to deposit"the proceeds of drug and firearms importation".
"Cash could be deposited anonymously any time at hundreds of locations,"Justice Yates said.
He said the fine,agreed upon earlier this month by both CBA and Austrac,which is the largest civil penalty imposed in Australian history,would deter others from contravening the laws.
"It marks the court's strong disapproval of the bank's conduct,"Justice Yates said.
The bank has previously said the breaches were due to a system error with its new ATMs,in use since 2012,which failed to introduce a daily limit on how much customers could deposit.
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Justice Yates said $17.5 million deposited during those transactions were connected with money laundering syndicates being investigated or prosecuted by police.