Bank of America fined $1.2 billion for money laundering and sanctions violations

Bank of America money laundering sanctions violations FinCEN federal penalties

Bank of America has been hit with more than $1.2 billion in federal penalties for violating anti-money laundering and sanctions laws. The sanctions, announced by the US Treasury Department, represent the third-largest penalty in the agency's history.

The Financial Crimes Enforcement Network (FinCEN) assessed a $1.2 billion penalty due to the bank's failure to mitigate and report priority national security risks. These risks included Chinese money-laundering networks and illicit finance activities near the US-Mexico border. FinCEN noted that the bank failed to timely report over $5 billion in suspicious transactions and effectively outsourced much of its detection obligations to third parties.

Additionally, the Office of the Comptroller of the Currency (OCC) imposed a $750 million fine, the largest in its history, for deficient anti-money laundering programs. The bank also reached an $11.6 million settlement with the Office of Foreign Assets Control (OFAC) to resolve 475 violations of sanctions programs involving countries such as Iran and Russia, as well as issues related to narcotics and global terrorism.

Bank of America admitted to willfully violating the Bank Secrecy Act. The company expects the penalties to result in a $1.2 billion non-tax-deductible charge, which is estimated to reduce net income by approximately 17 cents per share in the third quarter.

Entities

Bank of America · Financial Crimes Enforcement Network · Office of the Comptroller of the Currency · Scott Bessent · U.S. Department of the Treasury · U.S. Treasury Department · US Treasury Department

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] The case involves suspicious transactions totaling more than $5 billion.
[● 3 SOURCES] Bank of America stated it has already invested billions of dollars in technology to combat financial crime.
[● 3 SOURCES] The penalty includes an $11.6 million payment for violating sanctions against Iran and Russia.
[● 3 SOURCES] The US Treasury Department has imposed penalties of more than $1.21 billion on Bank of America.
[● 3 SOURCES] The bank failed to report Chinese money laundering networks.
[● 19 SOURCES] The penalties are due to violations of anti-money laundering and sanctions laws. bahamasspectator.com · denpasar24.com · doanhnghiephoinhap.vn · www.ftnews.sk · haitigazette.com · +10 more
[● 3 SOURCES] Approximately one-fifth of the suspicious transactions involved national security concerns.
[● 8 SOURCES] Bank of America will allow external auditors to analyze suspicious transactions. www.leinetal24.de · www.spacemoney.com.br · www.diariolibre.com · www.fehmarn24.de · www.kurierverlag.de
[● 33 SOURCES] The Office of the Comptroller of the Currency (OCC) imposed a $750 million fine, its largest ever. pilarpolitico.com.ar · www.spacemoney.com.br · www.ntd.com · www.thegatewaypundit.com · www.it-boltwise.de · +21 more
[● 38 SOURCES] Over $1 billion of the unreported activity involved high-priority national security risks, including Chinese money-laundering networks. pilarpolitico.com.ar · www.spacemoney.com.br · www.ntd.com · www.leinetal24.de · www.thegatewaypundit.com · +26 more
[● 39 SOURCES] Bank of America is facing more than $1.2 billion in federal penalties. pilarpolitico.com.ar · www.spacemoney.com.br · www.ntd.com · www.leinetal24.de · www.thegatewaypundit.com · +27 more
[● 38 SOURCES] Bank of America failed to timely report to FinCEN over $5 billion dollars in suspicious transactions. pilarpolitico.com.ar · www.spacemoney.com.br · www.ntd.com · www.leinetal24.de · www.thegatewaypundit.com · +26 more