Money laundering failures land Bank of America with a $1.2 billion fine
US authorities have imposed a $1.2 billion (€1.07bn) penalty on Bank of America over failures to tackle money laundering. The bank also settled alleged sanctions violations involving Iran and Russia.
The US Treasury Department announced on Tuesday that it has levied a $1.2 billion fine on Bank of America for shortcomings in anti-money laundering measures. According to Treasury Secretary Scott Bessent, these failures by a bank of such magnitude can have far-reaching implications, jeopardizing the integrity of the entire US financial system.
The fine represents the third-largest penalty ever issued by the Treasury Department, following a $4 billion settlement with cryptocurrency exchange Binance in 2023 and a $3 billion settlement with Canadian bank TD in 2022.
As part of the fine, Bank of America has also reached an $11.6 million settlement with the Treasury Department's Office of Foreign Assets Control for violations of multiple sanctions programs, including those relating to Iran, Russia, narcotics, and global terrorism. The Financial Crimes Enforcement Network (FinCEN) imposed the bulk of the fine for the bank's failure to detect and report suspicious transactions, which amounted to over $5 billion. This included $1 billion linked to national security and other priority financial crime risks.
Bank of America admitted to willfully violating the 1970 Bank Secrecy Act, which mandates banks to assist authorities in identifying and preventing money laundering. The bank stated that it is taking the issue seriously and has invested heavily in technology and staff to combat financial crime. However, it acknowledged that there is still work to be done to address the concerns raised by regulators.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
