The U.S. Treasury Department has fined Bank of America $1.2 billion for failing to maintain anti-money laundering programs and report suspicious transactions.
Key facts
- •The $1.2 billion penalty is the third-largest ever issued by the U.S. Treasury Department.
- •The $750 million portion paid to the Office of the Comptroller of the Currency is the largest fine that agency has ever levied.
- •Bank of America admitted to willfully violating the 1970 Bank Secrecy Act.
- •The bank failed to report over $5 billion in suspicious transactions, including those linked to national security risks.
- •A separate $11.6 million settlement addresses sanctions violations related to countries including Iran and Russia.
The U.S. Treasury Department announced Tuesday that Bank of America must pay $1.2 billion in fines for violating anti-money laundering and sanctions laws. The penalty, which is the third-largest in Treasury history, includes a record $750 million fine for the Office of the Comptroller of the Currency. The bank admitted to willfully violating the Bank Secrecy Act by failing to maintain required compliance programs and neglecting to file mandatory reports on suspicious activity.
By the numbers
Scope of Violations
Regulators stated that Bank of America failed to timely report over $5 billion in suspicious transactions to the Financial Crimes Enforcement Network (FinCEN). These transactions included activity linked to Chinese money laundering networks, fraud, and potential trade-based money laundering connected to the southwest border. Additionally, the bank reached an $11.6 million settlement with the Office of Foreign Assets Control regarding 475 apparent violations of sanctions programs involving Iran, Russia, narcotics, and global terrorism.
Bank Response
In a statement, Bank of America acknowledged the resolutions and stated that it is committed to addressing the issues raised by regulators. The bank noted that it has invested billions of dollars in technology and employs thousands of staff members dedicated to combating financial crime. The institution emphasized that it continues to support law enforcement by filing hundreds of thousands of suspicious activity reports annually.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by NBC News Business, ABC News Business.
