CANBERRA, Nov. 26 (Xinhua) -- The Australian government and the opposition have welcomed the resignation of the chief executive officer (CEO) of the nation's second biggest bank.

Brian Hartzer, the CEO of the Westpac Banking Corporation, announced he would step down effective on Monday after the Australian Transaction Reports and Analysis Centre (AUSTRAC) accused the bank of 23 million breaches of Australia's anti-money laundering laws.

Responding to the announcement, Health Minister Greg Hunt said that Hartzer had made the right decision.

Both Prime Minister Scott Morrison and Treasurer Josh Frydenberg called for the bank's board to reconsider the position of senior management after AUSTRAC identified "systemic failures" caused by "indifference by senior management and inadequate oversight by the board."

Hunt said it was an "appropriate" move, according to The Australian Broadcasting Corporation on Tuesday.

"I think it's necessary and it follows the strongest, clearest comments from the Prime Minister and the Treasurer about community expectations, government expectations in the face of what is a serious and profound breach."

The 23 million breaches alleged by AUTRAC, the anti-money-laundering and counter-terrorism financing regulator, included the failure by the bank to adequately monitor the accounts of a convicted child sex offender who was regularly sending money to the Philippines.

Jim Chalmers, the opposition Labor Party's Treasury spokesperson, on Tuesday said that Hartzer "had no option" but to stand down.

"Brian Hartzer had no option but to resign after the extremely serious and appalling revelations of what has gone on in Westpac over a period of some years," he said.

"But it doesn't end there, there are a whole range of steps that Westpac clearly needs to take to clear up their act."