"The Board accepts the gravity of the issues raised by AUSTRAC,"Mr Maxsted said in the statement.

"As was appropriate,we sought feedback from all stakeholders including shareholders and having done so it became clear that Board and management changes were in the best interest of the Bank."

"Brian leaves the bank with a strong balance sheet,with each of our businesses number one or two in their markets,"he said.

Mr Maxsted has been the bank's chairman since 2011.

The bank’s announcement did not say who would be its next chairman. It comes two days after Mr Maxsted gave Mr Hartzer his strong backing,with the caveat that the CEO would leave if it was destabilising for him to remain in the top job.

Mr King will be paid fixed remuneration of $2.1 million a year,with a short term bonus target of $2.1 million and an annual long-term incentive of up to $2.8 million.

The bank was thrown into crisis last week by a regulatory lawsuit that says itbreached anti-money laundering laws 23 million times,including failing to adequately vet thousands of payments potentially linked to child exploitation.

The Australian Securities and Investments Commission (ASIC) on Monday took the unusual step of publicly confirming it had started looking into possible breaches of laws it administers — most likely a reference to the Corporations Act.

Confirmation of the ASIC investigation came a day after theAustralian Prudential Regulation Authority (APRA) said it too was investigating the bank.