Bank of America fined $1.2 billion over money-laundering violations
Bank of America has been fined $1.2 billion by U.S. regulators for failing to report suspicious transactions and neglecting anti-money-laundering protocols. The bank admitted to the violations and stated it is working on remediation efforts.
Why it matters
The massive fine underscores the regulatory crackdown on financial institutions regarding national security risks and illicit money flows.
Bank of America was hit with more than $1.2 billion in federal penalties Tuesday after regulators said the nation's second-largest bank failed for years to report more than $5 billion in suspicious transactions and fix longstanding anti-money-laundering problems.
More than $1 billion of the unreported activity involved national security and other high-priority risks, including Chinese money-laundering networks and activity tied to the southwest border, Treasury said in a press release .
The action also lands less than a day before the bank reports quarterly earnings Wednesday morning.
Treasury's Financial Crimes Enforcement Network, which enforces anti-money-laundering rules, said the $1.2 billion penalty is the third-largest in Treasury history. Treasury separately announced an $11.6 million settlement over sanctions violations.
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