Bank of America fined billions for money laundering failures

Bank of America has been fined $1.2 billion in the US for anti-money laundering failures and other violations. The Ministry of Finance 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 income 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 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 imposed a $350 million fine on American Express National Bank, the direct banking subsidiary of credit card giant American Express, for similar anti-money laundering deficiencies.