Fight against money laundering: Bank of America has to pay a billion-dollar fine

The US Treasury Department has imposed the third-largest fine in its history on Bank of America. The financial institution has to pay over a billion dollars for failing to report suspicious activity.

Bank of America has been fined $1.2 billion in the US for anti-money laundering failures and other violations. The Treasury said this was the third-highest fine it had ever imposed. The major bank failed to report more than $5 billion in suspicious activity, including activity that posed risks to national security.

The bank gave priority to its own revenue when creating compliance programs. “When a bank of this size fails to meet its anti-money laundering and sanctions compliance obligations, the consequences reach far beyond its own walls,” said Treasury Secretary Scott Bessent.

The fine also includes a payment of $11.6 million after a settlement for violating sanctions against Iran and Russia, among others, as the ministry announced. According to a court document, the bank will allow external auditors to analyze suspicious transactions. The bank noted in a statement to Bloomberg that it has already invested billions of dollars in technology to combat financial crime. They are working on fixing the problems denounced by regulators.

The bank said its third-quarter results, scheduled for release on Wednesday, would include a $1.2 billion nontax-deductible charge that would reduce quarterly profit by about 17 cents per share.

Last week, authorities fined American Express National Bank, the direct banking subsidiary of credit card giant American Express, $350 million for similar anti-money laundering deficiencies.