BofA Sheds $30 Billion in Value as Years of Lapses Come to Light
Regulators were on edge. After they’d pushed Bank of America Corp. to tweak a key compliance system to flag more suspicious transactions, the bank found it had missed a staggering amount: thousands of payments totaling $4 billion of activity.
U.S. Treasury Secretary Scott Bessent announced a $1.2 billion fine imposed on Bank of America for alleged violations of anti-money laundering and sanctions laws. This fine makes it the third-largest in Treasury Department history. Bessent warned that such failures can put the entire U.S. financial system at risk from illicit finance.
In addition to the fine, Bank of America also settled with the Treasury's Office of Foreign Assets Control for $11.6 million over alleged violations of various sanctions programs, including those targeting Iran, Russia, narcotics, and global terrorism. The Financial Crimes Enforcement Network (FinCEN) assessed the $1.2 billion penalty for Bank of America's inability to mitigate and report national security risks, such as Chinese money laundering networks and illicit finance along the southwest border.
Bank of America admitted to willfully violating the 1970 Bank Secrecy Act, which mandates banks to assist in detecting and preventing money laundering. The bank stated that they have invested significantly in technology and personnel to combat financial crime, and are committed to completing the required work to address the regulators' concerns.
The latest fine ranks third behind a $4 billion settlement with cryptocurrency exchange Binance in 2023 and a $3 billion settlement with Canadian bank TD Bank the following year.
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