Law firm Phi Finney McDonald has filed a class action in the Federal Court against the Commonwealth Bank (CBA) over allegations that it misled investors regarding breaches of anti-money laundering and counter-terrorism financing (AMT/CTF) laws.

Last month anti-money laundering agency AUSTRAC and the bank agreed to a $700 million settlement to resolve a Federal Court case alleging serious breaches of AMT/CTF laws.

Phi Finney McDonald says CBA should have informed shareholders that it had failed to monitor potential money laundering and terrorism financing activity on more than 700,000 accounts, and failed to alert AUSTRAC about suspicious transactions.

The class action is for shareholders who owned CBA shares between 16 June 2014 and 3 August 2017.