Big four banks accused of money laundering

Labor has renewed calls for a royal commission into the banking sector after reports the big four institutions have all been used by criminal groups to launder drug funds.

Up to $5 million a day is being laundered through Australia's big banks, Fairfax Media reports.

As well as Westpac, ANZ, NAB and CBA, crime groups have also infiltrated mid-tier institutions like the Bank of Queensland and Bendigo Bank, the newspaper says.

Labor frontbencher Anthony Albanese says the revelations are "another argument" for a royal commission into the sector.

"We need a banking royal commission, and I don't know why the government is resisting this. It will happen, let's get on with it," Mr Albanese told the TODAY Show today.

But government minister Christopher Pyne again dismissed calls for the inquiry, saying it would take "years and years to report and to do anything".

"The last thing we need is a royal commission. We just need the police and ... the officials who look after fraud to do their job," he said.