US fines Bank of America US$1.2 billion for anti-money laundering violations
WASHINGTON: The US Treasury Department said on Tuesday that it was imposing penalties of more than US$1.2 billion on Bank of America, citing “violations of anti-money laundering and sanctions laws”.
The US Treasury Department has imposed penalties of over US$1.2 billion on Bank of America for violations of anti-money laundering and sanctions laws. The bank failed to report more than US$5 billion in suspicious transactions, some of which involved national security risks and illicit finance concerns such as Chinese money laundering networks and activities along the southwest US border.
The charge includes a US$750 million civil penalty from the Office of the Comptroller of the Currency (OCC) and an additional US$11.6 million settlement with the Treasury's Office of Foreign Assets Control for breaches of various sanctions programs, including those targeting Iran, Russia, narcotics, and global terrorism. Treasury Secretary Scott Bessent emphasized that such failures by major financial institutions can expose the entire US financial system to significant illicit finance risks.
As a result of these actions, Bank of America is expected to report a US$1.2 billion charge, reducing its net income by approximately 17 cents per share. The bank has agreed to work with a third party to identify and report previously undetected suspicious transactions and will undergo an independent review of its anti-money laundering program and compliance with the Bank Secrecy Act.
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