Bank of America hit with more than $1.2 billion in penalties over money-laundering violations
Regulators said the bank failed to report more than $5 billion in suspicious activity and processed payments tied to sanctioned countries.
- On Tuesday, the Treasury Department ordered Bank of America to pay $1.2 billion after finding willful violations of the Bank Secrecy Act and sanctions laws.
- The bank admitted it "failed to maintain" an anti-money laundering program and neglected to report over $5 billion in suspicious transactions to the Financial Crimes Enforcement Network , with over $1 billion involving national security risks including Chinese Money Laundering Networks.
- As part of the settlement, the Office of the Comptroller of the Currency levied a $750 million fine—the largest ever by that agency—while the institution settled "its potential civil liability for 475 apparent violations" of sanctions programs targeting Russia, Iran, and Burma.
- Treasury Secretary Scott Bessent warned that compliance failures expose the U.S. financial system to significant illicit finance risks, stating, "Today's actions send a clear message that even the biggest financial institution are not above the law."
- Processing $450 trillion in corporate payments and about $4.5 trillion for 70 million individual clients annually, the bank reports third-quarter earnings on Wednesday, facing heightened regulatory scrutiny.
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The U.S. Treasury announced a $1.2 billion fine against Bank of America for breaches related to money laundering and financial sanctions.
Why Bank of America Was Fined USD 1.2 Billion by the US Treasury Department
Bank of America has been hit with over USD 1.21 billion in penalties by the US Treasury Department for anti-money laundering and sanctions violations. The nation's second-largest bank admitted to Bank Secrecy Act violations after failing to report more than USD 5 billion in suspicious transactions and restricting compliance resources. Why Bank of America Was Fined USD 1.2 Billion by the US Treasury Department.
According to the Treasury Department, the second largest bank in the United States has failed to take consistent action against money laundering, which is now becoming expensive for the Bank of America.
The Bank of America is said to have failed to meet its commitments to combat money laundering, and the Treasury has now made a $1.2 billion payment.
US hits Bank of America with $1.2 billion fine, says it violated money laundering, sanctions laws
The US Treasury Department announced a $1.2 billion fine against Bank of America for violating anti-money laundering laws. This penalty marks the third-largest ever imposed by the department in its history. Alongside this fine, Bank of America settled for $11.6 million over sanctions violations related to various programs. The bank acknowledged willful violations of the Bank Secrecy Act, emphasizing its commitment to compliance.
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