{
  "id": 14330262,
  "title": "Bank of America fined US$1.2bn",
  "url": "https://urgent.news/2026/10/14/bank-of-america-fined-us-1-2bn",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-14T00:09:30.000Z",
  "source": {
    "name": "RTHK News - Finance",
    "slug": "rthk-news-finance",
    "url": "https://news.rthk.hk/rthk/en/component/k2/1873847-20261014.htm"
  },
  "original_language": "en",
  "account": "US regulators imposed a US$1.21 billion fine on Bank of America for systemic issues in detecting potential money laundering and illicit activities, a penalty that will negatively impact the bank's third-quarter earnings. The US Treasury Department's third-largest fine in history targets the bank's failure to report over US$5 billion in suspicious transactions to authorities, including a significant US$1 billion amount linked to national security risks. Treasury Secretary Scott Bessent emphasized that when large financial institutions like Bank of America falter in their anti-money laundering and sanctions duties, the repercussions extend beyond the institution itself, placing the entire US financial system at risk of significant illicit finance exposure. The Treasury attributed the bank's shortcomings to an overemphasis on revenue generation and a reliance on external disclosures from law enforcement and other financial entities, rather than robust internal controls. As part of the consent order, Bank of America must engage an independent third party to scrutinize past transactions and report any undetected suspicious activity to FinCEN. The compliance issues stemmed from the bank's prioritization of revenues in developing its compliance programs and its failure to rely sufficiently on internal controls. Bank of America acknowledged the seriousness of financial crime compliance, stating that it has invested heavily in technology and personnel to combat financial crime but remains committed to addressing the regulator's concerns. The company's third-quarter financial results, scheduled for release on Wednesday, will include a non-deductible charge of US$1.2 billion, reducing quarterly net income by approximately 17 cents per share. Analysts anticipate that the penalty may dampen investor sentiment and raise concerns about increased expenses and the bank's ability to sustain its US$6 billion quarterly share buyback program. With earnings due on Wednesday, analysts predict that Bank of America's shares are likely to underperform at the opening bell. The Office of the Comptroller of the Currency levied a US$750 million civil penalty against the bank, the largest ever for the regulator, citing failures in addressing identified weaknesses in the bank's anti-money laundering programs as part of a 2024 cease-and-desist order. The regulator also imposed a US$11.6 million fine on the bank for over 400 apparent violations of sanctions programs targeting countries including Russia and Iran. The fine follows a recent US$350 million penalty levied against American Express for comparable anti-money laundering lapses.",
  "summary": "Bank of America has been fined US$1.21 billion by US regulators for widespread failures to detect potential money laundering and other illicit activity, a penalty the bank said will hurt third-quarter earnings. The US Treasury Department said the fine, the third-largest in department history, is due to the bank's failure to report more than US$5 billion in suspicious activity to the government,…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 6,
    "also_reported_by": [
      {
        "outlet": "Financial Times",
        "title": "Bank of America fined $1.2bn over money laundering failures",
        "url": "https://urgent.news/2026/10/13/bank-of-america-fined-1-2bn-over-money-laundering-failures",
        "published": "2026-10-13T20:00:06.000Z"
      },
      {
        "outlet": "Investing.com",
        "title": "Bank of America fined $1.2 billion over anti-money laundering failures, FT reports",
        "url": "https://urgent.news/2026/10/13/bank-of-america-fined-1-2-billion-over-anti-money-laundering-failures",
        "published": "2026-10-13T20:24:08.000Z"
      },
      {
        "outlet": "CNBC",
        "title": "Bank of America fined $1.2 billion over money-laundering violations",
        "url": "https://urgent.news/2026/10/13/bank-of-america-fined-1-2-billion-over-money-laundering-violations",
        "published": "2026-10-13T20:45:01.000Z"
      },
      {
        "outlet": "The Hill",
        "title": "Treasury fines Bank of America $1.2B for violating money laundering, sanctions law",
        "url": "https://urgent.news/2026/10/13/treasury-fines-bank-of-america-1-2b-for-violating-money-laundering",
        "published": "2026-10-13T21:45:01.000Z"
      },
      {
        "outlet": "Straits Times Business",
        "title": "US fines Bank of America US$1.2b for anti-money laundering violations",
        "url": "https://urgent.news/2026/10/13/us-fines-bank-of-america-us-1-2b-for-anti-money-laundering-violations",
        "published": "2026-10-13T23:05:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}