Bank of America Fined $1.2 Billion for Lax Money-Laundering Oversight

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1. 50m ago

   Treasury Fines Bank of America $1.2 Billion for Money Laundering Failures

   The U.S. Treasury Department's Financial Crimes Enforcement Network fined Bank of America $1.2 billion for failing to report and mitigate priority national security risks. The Treasury cited violations of sanctions laws and anti-money laundering rules, specifically noting the bank's failure to flag transactions linked to illicit finance along the southwest border and Chinese money laundering networks. Additionally, the Office of the Comptroller of the Currency imposed a $750 million civil money penalty due to a deficient Bank Secrecy Act compliance program. The announcement occurred just before the bank reported third-quarter earnings.

   Why it matters

   The penalty coincides with a reported third-quarter revenue miss and trading weakness. This regulatory action contributed to a 7% drop in share price, marking the stock's worst day since 2025.

   What is confirmed

   • The U.S. Treasury Department imposed a penalty of $1.2 billion on Bank of America for violating anti-money laundering and sanctions laws.
   • FinCEN cited the bank's failure to report priority national security risks, including Chinese money laundering networks and illicit finance along the southwest border.
   • The Office of the Comptroller of the Currency assessed a $750 million civil money penalty for deficient Bank Secrecy Act compliance.
   • Bank of America shares fell 7% following a third-quarter revenue miss and the regulatory penalty.
   • The Treasury Department announced the action less than a day before the bank reported quarterly earnings.

   What to watch next

   • Bank of America's formal response to the FinCEN and OCC penalties
   • Further details on the specific transactions linked to Chinese laundering networks
   Sources used for this update (20)

   1. www.nytimes.com — The New York Times - Breaking News, US News, World News and Videos
   2. CNN — Bank of America fined $1.2 billion by Treasury Department for anti-money laundering and sanctions law violations
   3. www.cnbc.com — Bank of America fined $1.2 billion over money-laundering ...
   4. Yahoo Finance — Bank of America hit with $1.2 billion penalty over money laundering failures
   5. CNBC — Bank of America fined $1.2 billion over money-laundering violations
   6. Reuters — Bank of America fined $1.2 billion by US government for failing to police suspicious activity
   7. The Washington Post — Treasury Department imposes $1.2 billion penalty against Bank of America
   8. The New York Times — Bank of America Fined $1.2 Billion for Lax Money-Laundering Oversight
   9. BBC — Bank of America fined $1.2bn over failing to stop money laundering
   10. Yahoo Finance — AP Top Extended Financial Headlines at 5:00 p.m. EDT
   11. Bloomberg.com — BofA Hit With $1.2 Billion of Fines Over Money-Laundering Lapses
   12. Yahoo Finance — Bank of America stock on track for worst day since 2025 as $1.2 billion fine weighs on Q3 earnings
   confidence 100%