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Bank of America fined $1.2bn by US Treasury over money laundering and sanctions failures
Overview
The US Treasury Department has fined Bank of America $1.2bn (£910m) for failing to detect and report potential money laundering and illegal activity, including omitting over $5bn in suspicious activity reports. The bank admitted to wilfully violating the Bank Secrecy Act by relying on external inquiries rather than internal controls for proactive detection. The penalty comprises fines from the Office of the Comptroller of the Currency and the Office of Foreign Assets Control, with the bank stating the non-tax-deductible charge will impact its third-quarter earnings.
Key points
- Bank of America was fined $1.2bn (£910m) by the US Treasury Department for anti-money laundering and sanctions failings.
- The bank failed to report over $5bn in suspicious activity, including transactions linked to Chinese money laundering networks and trade-based laundering.
- Bank of America admitted to wilfully violating the Bank Secrecy Act by failing to maintain a compliant anti-money laundering programme.
- The Office of the Comptroller of the Currency imposed a $750m fine, marking the largest penalty it has ever levied.
- The Office of Foreign Assets Control settled for apparent violations of sanctions programmes involving Russia, Iran, narcotics, and global terrorism.
- The bank stated the penalty will result in a non-tax-deductible charge impacting its third-quarter net income by approximately 17 cents per share.