BofA profits drop 17% after $1.2bn money laundering fine
Second-largest US bank also delivers disappointing performance in trading and investment banking
The Treasury Department has imposed a fine of over $1.2 billion on Bank of America (BoA) for failing to report suspicious transactions linked to Chinese money laundering networks, reported Business Insider. BoA, the second-largest bank in the US, was accused of not notifying the Financial Crimes Enforcement Network (FinCEN) about over $5 billion in suspicious transactions.
These transactions were allegedly associated with money laundering networks along the US's southwestern border and violated several sanctions programs, including those on Iran, Russia, narcotics, and global terrorism. BoA spokesperson stated that the fine would affect the bank's upcoming quarterly earnings, with an estimated net income reduction of approximately 17 cents per share.
The Treasury Secretary, Scott Bessent, emphasized that such actions send a clear message that even the largest financial institutions are not above the law.
Written by urgent.news from Business Insider's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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