He was withdrawn from the side to face the Melbourne Stars at the MCG on Wednesday night.
Bowlers are not allowed to straighten the elbow joint by more than 15 degrees from the moment the arm passes above shoulder height and the point the ball is released.
Green is unable to bowl for a minimum of 90 days in competitions run by CA, which rules him out of the rest of the BBL as a bowler though he can still play as a batsman.
The ban does not pertain to the Indian Premier League. Green was last month bought for $41,000 by the Kolkata Knight Riders in the IPL player auction.
“We’d like to commend Chris and the Thunder for the way they have approached this process with complete cooperation and respect,” CA’s cricket operations boss Peter Roach said. “Chris undertook testing at the earliest possible time and satisfactorily replicated his bowling action in the controlled environment.
“We look forward to working with Chris in the coming months and conducting further testing once the suspension period has elapsed.”
Sources have said pictures of Green’s action have been shared privately by players.
Green has taken only three wickets in seven games this season but has been a key part of the Thunder’s side with his ability to contain the scoring and with his big hitting in the lower order.
The 26-year-old had been considered an outside chance to break into Australia’s Twenty20 side for this year’s World Cup.
Green spoke of his aspirations of playing at the international level at the start of the season.
“Playing for Australia would be a dream come true,” Green said. “I’m fortunate enough to have some conversations with Trevor Hohns about T20 and my name being in the mix for Australian selection.
“He said to me playing around the world and not being in Australia doesn’t mean I’m not being considered.
“They like the experience I bring. I have to keep pushing and putting my best performances because I know how well Ashton Agar and Adam Zampa are doing.”
Though Green has not been capped at first-class level and played just eight games at List A level, he is well travelled on the Twenty20 circuit, having featured in tournaments in England, Pakistan and the Caribbean. He has also lined up in tournaments in cricket outposts like Canada and Denmark.
Andrew Wu writes on cricket and AFL for The Sydney Morning Herald
Daniel is an Age sports reporter