Bank of America has been fined $1.2bn by US regulators for failing to spot suspicious transactions and money-laundering risks, including activity linked to Chinese networks. The bank said the charge will cut third-quarter net income by about 17 cents a share.
01Summary
- 01The US Treasury Department said Bank of America failed to report more than $5bn in suspicious activity.
- 02About $1bn of that activity posed national security and illicit finance risks, the Treasury said.
- 03The bank did not flag transactions that may have involved Chinese money-laundering networks and trade-based laundering linked to the south-west border.
- 04The $1.2bn settlement included penalties from the OCC and OFAC, with the OCC’s $750m fine its largest ever.
- 05OFAC said the case covered 475 apparent sanctions violations, including programmes involving Russia, Iran, narcotics and global terrorism.
02Why it matters
The fine is large enough to affect Bank of America’s quarterly results and it raises questions about the bank’s controls. It also underlines how US regulators are treating anti-money-laundering failures as a broader financial and national security risk.
Pulse AIAsk about this story
Answers are generated by AI from the story summary; they are not investment, health or legal advice.
