Westpac's chief executive Brian Hartzer

$2.7 million payout for 'disgraceful' Westpac boss forced out over money laundering scandal

Mr Hartzer will depart the bank on December 2, but has been given 12 months' notice and will be paid his full $2.7 million salary for the period.

However, his so-far unvested short and long-term bonuses will not be paid and he will not be eligible for any future bonuses.

Westpac was sued by the financial intelligence agency AUSTRAC, which last week applied to the Federal Court to issue fines against the bank.

Each breach could attract a civil penalty between $17 million and $21 million.