Bank of America faces $1.2 billion FinCEN penalty for AML failures

Bank of America is facing a $1.2 billion penalty from the Financial Crimes Enforcement Network (FinCEN) following significant failures in its anti-money laundering (AML) programs. Regulators identified that the bank failed to promptly report more than $5 billion in suspicious transactions, hindering authorities' ability to investigate potential criminal networks.

Investigations revealed that the bank's compliance staff had flagged high-revenue customers as high-risk, but business interests reportedly overrode these concerns. Specifically, two customers operating online marketplaces for salvaged vehicles were identified as having suspicious patterns, including cash structuring and wires from high-risk jurisdictions. One related vehicle export business received hundreds of millions of dollars in cross-border wires from Eastern Europe, primarily Georgia, despite being classified as a small-to-medium business.

In addition to the FinCEN penalty, the bank faces a separate $750 million penalty from another regulator and an $11.6 million sanctions settlement. The bank is now required to review past activity and strengthen its compliance systems to prevent future lapses in detecting and reporting financial crime.