Bank of America fined $1.2bn over money laundering failures
The US Treasury Department's Financial Crimes Enforcement Network (FinCEN) fined Bank of America $1.2 billion for failing to report and mitigate priority national security risks. These failures included illicit finance along the southwest border and Chinese money laundering networks. Additionally, the Office of the Comptroller of the Currency imposed a $750 million penalty for an ineffective Bank Secrecy Act/anti-money laundering compliance program. The bank failed to report over $5 billion in suspicious activity, with $1 billion of that posing national security risks. Bank of America shares fell 7% following the penalty and a third-quarter revenue miss.
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- ✓ FinCEN assessed a $1.2 billion penalty against Bank of America for failing to report national security risks including Chinese money laundering networks and illicit finance along the southwest border.
- ✓ The Office of the Comptroller of the Currency fined Bank of America $750 million for a deficient Bank Secrecy Act/anti-money laundering compliance program.
- ✓ Bank of America failed to report more than $5 billion in suspicious activity to the government.
- ✓ Of the unreported suspicious activity, $1 billion posed illicit finance and national security risks.
What changed
The US Treasury and the Office of the Comptroller of the Currency issued specific penalties totaling nearly $2 billion for compliance and reporting failures.
Live updates
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US Regulators Fine Bank of America $1.2 Billion for Money Laundering Failures
The US Treasury Department's Financial Crimes Enforcement Network (FinCEN) fined Bank of America $1.2 billion for failing to report and mitigate priority national security risks. These failures included illicit finance along the southwest border and Chinese money laundering networks. Additionally, the Office of the Comptroller of the Currency imposed a $750 million penalty for an ineffective Bank Secrecy Act/anti-money laundering compliance program. The bank failed to report over $5 billion in suspicious activity, with $1 billion of that posing national security risks. Bank of America shares fell 7% following the penalty and a third-quarter revenue miss.
Why it matters
These penalties target systemic deficiencies in how the bank monitors and reports illegal financial activity. The timing is significant as the Treasury announced the action shortly before the bank reported its quarterly earnings. The fines reflect a broader regulatory focus on national security threats linked to illicit finance.
What is confirmed
- FinCEN assessed a $1.2 billion penalty against Bank of America for failing to report national security risks including Chinese money laundering networks and illicit finance along the southwest border.
- The Office of the Comptroller of the Currency fined Bank of America $750 million for a deficient Bank Secrecy Act/anti-money laundering compliance program.
- Bank of America failed to report more than $5 billion in suspicious activity to the government.
- Of the unreported suspicious activity, $1 billion posed illicit finance and national security risks.
- Bank of America shares dropped 7% after the regulatory penalty and a third-quarter revenue miss.
What to watch next
- Bank of America's formal response to the FinCEN and OCC penalties
- Further details from the bank's quarterly earnings report regarding the $1.2 billion charge
confidence 100%Sources used for this update (17)
- www.aljazeera.com — Breaking News, World News and Video from Al Jazeera
- www.bbc.com — BBC Home - Breaking News, World News, US News, Sports, Business...
- AP News — US hits Bank of America with $1.2 billion fine, saying it violated money laundering, sanctions laws
- Fox Business — Bank of America hit with $1.2B in penalties over money laundering compliance failures
- www.cnbc.com — Bank of America fined $1.2 billion over money-laundering ...
- CNBC — Bank of America fined $1.2 billion over money-laundering violations
- CNBC — Bank of America shares drop 7% after third-quarter revenue miss and regulatory penalty
- Reuters — BofA misses profit estimates on trading weakness, books $1.2 billion charge
- Euronews.com — Bank of America fined $1.2bn over money laundering failures
- Yahoo Finance — Why Bank of America (BAC) Shares Are Trading Lower Today
- Yahoo Finance — Wall Street grills Bank of America over money laundering fine
- www.theguardian.com — AI godfather Geoffrey Hinton: ‘We’re creating alien beings. I’m willing to be selfish and choose humans’ | Donald Trump
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