In brief
Bank of America has been fined $1.2 billion in the largest penalty ever imposed by the U.S. Treasury for sweeping money‑laundering failures. The bank failed to report over $5 billion in suspicious transactions, including a $1 billion amount linked to national‑security risks. The fine includes separate penalties from the OCC ($750 million) and OFAC ($11.6 million) for sanctions violations. The settlement comes days before the bank’s quarterly earnings release, adding a $1.2 billion charge that will trim net income by about 17 cents a share. Bank officials say they are dedicating staff and resources to remediate the gaps.
Bank of America has been fined $1.2 billion by the U.S. Treasury for sweeping failures to flag suspicious transactions.
The penalty, the largest yet imposed on the U.S. banking sector, comes after the Treasury found that the lender had failed to report over $5 billion in potential money‑laundering activity, including a $1 billion amount linked to national‑security risks.
The penalties were split between the Office of the Comptroller of the Currency ($750 million) and the Office of Foreign Assets Control ($11.6 million) for sanctions violations, with the remainder imposed by the Treasury itself.
The bank’s lawyers say it is dedicating significant personnel and resources to remediation efforts and that the $1.2 billion charge will appear as a non‑tax‑deductible item in its upcoming quarterly earnings, trimming net income by roughly 17 cents a share.
In a statement to the BBC, Treasury Secretary Scott Bessent warned that a failure of this magnitude “exposes the entire U.S. financial system to significant illicit finance risks.”
Bank of America admitted it had willfully violated the Bank Secrecy Act by failing to maintain a compliant anti‑money‑laundering programme, conduct required due diligence on foreign correspondent accounts, and file Suspicious Activity Reports.
