Bank of America fined $1.2bn for failing to report suspicious transactions
Bank of America has been ordered to pay a $1.2 billion fine under a settlement with U.S. regulators after failing to identify and report more than $5 billion in suspicious transactions. The U.S. Treasury Department said nearly $1 billion of those transactions were linked to national security risks and illicit financing.
The case involves transactions that were potentially connected to Chinese money laundering networks and trade-based money laundering. U.S. officials said Bank of America relied too heavily on warnings from law enforcement agencies and other financial institutions when identifying suspicious activity, rather than strengthening its internal controls.
The U.S. Treasury Department said that by accepting the settlement, the bank admitted to wilful violations of the Bank Secrecy Act, anti-money-laundering programme requirements, rules on the review of foreign correspondent accounts, and the obligation to file suspicious activity reports.
Part of the fine was imposed by the Office of the Comptroller of the Currency and the Office of Foreign Assets Control. The OCC alone fined Bank of America $750 million, a figure it said was the largest penalty in its history.
The Office of Foreign Assets Control said the case involved 475 potential sanctions violations. These included sanctions related to Russia, Iran, narcotics and global terrorism.
Bank of America said it has devoted significant human and financial resources to addressing regulators’ concerns. The bank also said the fine was recorded in its third-quarter financial report and would significantly reduce its net income.
