Bank of America ($BAC) was fined $1.21 billion by U.S. regulators on October 13 for widespread failures in its anti-money laundering and sanctions compliance programs. The Treasury Department said the bank failed to report more than $5 billion in suspicious transactions, including over $1 billion involving national security and other high-priority illicit finance risks.
- The penalty is the third-largest in Treasury Department history.
- The Office of the Comptroller of the Currency imposed a $750 million penalty, its largest ever, included in the $1.21 billion total.
- Regulators cited failures to address deficiencies identified in a 2024 cease-and-desist order.
- The bank admitted to willful violations of the Bank Secrecy Act, according to Treasury.
- A separate $11.6 million settlement addressed more than 400 apparent sanctions violations involving countries including Russia and Iran.
- Bank of America expects a $1.2 billion non-tax-deductible charge in third-quarter earnings, reducing earnings by approximately $0.17 per share.
- Shares fell approximately 2% in after-hours trading following the announcement.
Relevant Companies
- Bank of America ($BAC) - Faces regulatory penalties, compliance reviews, and a $1.2 billion third-quarter earnings charge.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
