The Commonwealth Bank's annual general meeting was a long-drawn out event, but without the drama of a board spill, or a leadership challenge. Catherine Livingstone, relatively new to the chairman role, but a highly capable boardroom performer, took all her skills to CBA's Annual general meeting yesterday, and was on her feet for well over three hours, fielding most of the questions. She started proceedings with good news: The bank's net profit rose to A$9.9 billion, and this strength of earnings enabled the Board to announce an increased total dividend of $4.29 for the 2016/17 financial year. However, as Livingstone acknowledged, "progress and performance have been overshadowed by a range of reputational and regulatory matters which have impacted the bank ... [and] generated adverse perceptions of the Commonwealth Bank's culture and trustworthiness." CBA's chairman insisted that the bank had been blindsided by Austrac, unaware of the impending civil action until the anti-money laundering and counter-terrorism financing regulator commenced Federal Court proceedings on the 3 August, in relation to alleged breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act. Shortly afterwards, ASIC launched an investigation into whether CBA's hierarchy should have disclosed more information to the market about the Austrac matter before the legal claim was lodged. With the usual caution applying when the cases are related to court hearings, Livingstone said the Board was treating the court case and investigation with the gravity they warranted. What did emerge is that the bank's response to Austrac's allegations is required to be lodged with the Court by the 15 December, and will be made public. "The Board Committee also has oversight of the continuing Program of Action which is focused on ensuring that the bank complies with Austrac's current and evolving regulations," Livingstone said. This program of action has been underway since 2015 when CBA first became aware of compliance deficiencies in relation to the monitoring and reporting of certain transactions conducted through its  intelligent deposit machines. "If, as part of its work, the Committee finds that further action on accountability is required for parts of the organisation, or individuals, that will also be addressed as a priority, and we will be transparent regarding those outcomes," she said. In relation to ASIC's investigation, she added: "we are in the process of responding to its request for information." "And in relation to the class action, we intend to defend it vigorously: based on what we knew in 2015, and subsequently, the Board believes the Bank has met its continuous disclosure obligations."Nonetheless, it is clear that the bank was deficient in aspects of its compliance with Austrac's regulations, and it is equally clear that this has damaged CBA's reputation: with customers, shareholders, regulators and government. In addition to the ASIC investigation, an independent prudential inquiry was announced by APRA on the 28 August. The APRA Inquiry Panel has already commenced its detailed work, with a progress report due at the end of January 2018 and the final report at the end of April. The report will be made public.