In brief
The Treasury Department has fined Bank of America $1.2bn for failing to flag more than $5bn in suspicious transactions, including those linked to Chinese money‑laundering networks. The penalty is the largest imposed on a bank and a reminder that inadequate anti‑money‑laundering controls put the entire financial system at risk. The fine comes ahead of the bank’s quarterly earnings and will reduce net income by a comparable amount. OCC and OFAC imposed separate charges of $750m and $11.6m, covering sanctions violations involving Russia, Iran and narcotics. Bank officials have pledged to tighten internal controls and overhaul compliance procedures.
Bank of America has been fined $1.2bn (£910m) by the US Treasury Department for failing to detect potential money laundering and other illicit activity.
The bank failed to report more than $5bn of suspicious transactions, $1bn of which posed national security risks, the Treasury said.
These lapses included ignoring transactions that may involve Chinese money‑laundering networks or trade‑based laundering with ties to the southwest border, the Treasury added.
Bank of America told the BBC it is committed to completing the work required by regulators.
The fine announcement came less than 24 hours before the bank was set to release third‑quarter earnings.
The bank said its third‑quarter results will include a non‑tax‑deductible charge of $1.2bn, reducing net income by roughly 17 cents per share.
The Treasury noted the bank over‑relied on external inquiries and effectively outsourced much of its proactive detection responsibilities.
Bank admitted willfully violating the Bank Secrecy Act by not maintaining a compliant AML programme, failing due diligence on foreign correspondent accounts, and not filing suspicious activity reports.
The settlement includes $750m from the OCC, the largest penalty it has ever levied, and $11.6m from OFAC tied to 475 violations of sanctions programmes, including those on Russia, Iran, narcotics, and terrorism.
Bank officials have already dedicated significant personnel and resources to remediation, and the costs are reflected in last quarter’s expense base.
