Bank of America Fined $1.2 Billion for AML Violations
Bank of America faces record $1.2 billion fine for anti-money laundering and sanctions violations.
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Bank of America has been fined a record $1.2 billion for anti-money laundering (AML) violations and failures to comply with U.S. sanctions, according to the Treasury Department. The penalty marks one of the largest enforcement actions in the history of U.S. financial regulation.
The Treasury Department announced the penalties on Tuesday, citing longstanding AML failures and sanctions violations by the bank. Secretary of the Treasury Scott Bessent emphasized the importance of financial institutions in protecting national security, stating that the consequences of the bank’s failures extend beyond its own operations, putting the entire U.S. financial system at risk.
Regulators found that Bank of America failed to adequately investigate trillions of dollars in potentially suspicious transactions, despite being aware of significant compliance deficiencies. The fine includes the largest penalty in the history of the Office of the Comptroller of the Currency (OCC) and the third-largest in the history of the Financial Crimes Enforcement Network (FinCEN).
FinCEN assessed a $1.2 billion penalty against the nation’s second-largest bank, which includes credit for a $750 million civil penalty imposed by the OCC. A separate $11.6 million settlement with the Office of Foreign Assets Control (OFAC) brings the combined penalties to approximately $1.21 billion.
Treasury officials stated that Bank of America failed to report more than $5 billion in suspicious transactions on time, including over $1 billion in activity involving national security risks such as Chinese money laundering networks, fraud, and potential trade-based money laundering connected to the southwest border.
The enforcement action underscores the U.S. government’s commitment to holding financial institutions accountable for their role in preventing illicit finance. As regulators continue to crack down on AML violations, the case serves as a warning to other banks about the potential consequences of non-compliance.
Source: The Gateway Pundit
