Bank of America hit with $1.2bn fine for money laundering failings

The U.S. Department of the Treasury has imposed fines exceeding $1.21 billion on Bank of America for violations of anti-money laundering and sanctions laws. The banking giant allegedly failed to report Chinese money laundering networks, according to a Treasury Department statement. The penalties cover suspicious transactions totaling over $5 billion, with about a fifth of that amount linked to national security concerns.

The $11.6 million payment is a result of a settlement related to sanctions violations involving Iran and Russia, the Treasury added. A court document states that the bank will allow external auditors to analyze suspicious transactions. In a statement to Bloomberg's financial service, the bank noted that it had already invested billions in technology to combat financial crime and is working to address the regulatory issues highlighted.

The second-largest U.S. bank is set to release its numbers for the previous quarter on Wednesday, with the fine now impacting its figures. The financial institution was previously asked to improve its money laundering controls, which the Treasury said it failed to do adequately.