The US Treasury has fined Bank of America more than $1bn for "egregious and continued" money laundering and sanctions violations, concluding it failed to properly report more than $5bn in suspicious transactions. The penalty totals $1.2bn from the Financial Crimes Enforcement Network, a branch of the Treasury, which includes a $750mn civil penalty from the Office of the Comptroller of the Currency, one of the top US bank regulators. This is the largest such fine in the OCC’s history.
Regulators have placed Bof A under a consent order that requires the bank to work with a third party to identify and report undetected suspicious transactions. Treasury secretary Scott Bessent said financial institutions are on the front lines of protecting economic and national security, and when a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls.
The penalty is a blow for Bof A on the eve of its third-quarter earnings, with its management criticised by US authorities for failing to address compliance deficiencies. The bank said its third-quarter results would include a $1.2bn charge that reduces net income by 17 cents per share. Bof A stated it is "committed to completing the work required to address the issues raised by our regulators" and has invested billions in technology and thousands of employees to combat financial crime.
Source: Financial Times Companies · Summarized by HeadlinesBriefing