Bank of America hit with $1.2bn fine for money laundering failings
Bank of America has been fined $1.2bn (£910m) for failing to detect potential money laundering and other illegal activity, the US Treasury Department said on Tuesday. The banking giant failed to report over $5bn in suspicious activity to the government, $1bn of which posed national security and illicit finance risks, the Treasury said. Those failures [...] The post Bank of America hit with $1.2bn…
The US Treasury Department has fined Bank of America $1.2 billion for failing to detect potential money laundering and other illegal activities, according to a report on Tuesday. The bank was accused of not reporting over $5 billion in suspicious activity to the government, with $1 billion posing national security and illicit finance risks.
The Treasury identified failures in not flagging transactions potentially linked to Chinese money laundering networks, trade-based laundering, and activities along the southwest border. Bank of America acknowledged the violations and stated that the fine would impact its third-quarter results, with a non-tax-deductible charge of $1.2 billion reducing net income by approximately 17 cents per share.
The bank also emphasized that they had allocated significant personnel and resources to remediation efforts. Treasury Secretary Scott Bessent highlighted that the bank's failure to meet anti-money laundering and sanctions obligations could endanger the entire US financial system. The settlement included penalties from the Office of the Comptroller of the Currency (OCC) and the Office of Foreign Assets Control (OFAC), with the OCC imposing the largest fine in its history, $750 billion.
The OFAC settlement was tied to 475 violations of sanctions programs, including those on Russia, Iran, narcotics, and global terrorism.
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