Bank of America Fined Over $1.2 Billion for Compliance Failures
The U.S. Treasury has fined Bank of America over $1.2 billion for willfully violating the Bank Secrecy Act and failing to report more than $5 billion in suspicious transactions, some involving national security risks like Chinese money laundering networks. The penalties were issued by three agencies: FinCEN assessed a $1.2 billion penalty (the third-largest in Treasury history), OCC imposed a record $750 million civil fine, and OFAC added an $11.6 million settlement for sanctions violations related to Russia, Iran, and other programs. The bank admitted it prioritized revenue over compliance controls and relied on external inquiries rather than its own automated systems, leading to delayed reporting of suspicious activity. The OCC noted that the bank's transaction monitoring system failed to properly track trillions in transactions, with many late reports showing signs of money laundering. This is not Bank of America’s first warning; it was already under a cease and desist order from December 2024 for similar issues. The penalties require an independent review of the bank's compliance systems and hiring third parties to assess past unreported transactions.
Tickers: $BAC
Topics: Bank of America compliance violations crypto regulation FinCEN OCC OFAC Treasury Department
Read the full article at TheStreet
Part of the story Bank of America Fined Over $1.2 Billion for Money-Laundering Violations (6 articles)