FinCEN Assesses $1.2 Billion Penalty against Bank of America
U.S. agencies announced penalties and settlements tied to alleged anti-money-laundering and sanctions-control failures.
TL;DR
- U.S. agencies announced a $1.2 billion FinCEN penalty and a separate $750 million OCC penalty against Bank of America.
- The Treasury said the bank failed to mitigate and report priority risks; Reuters reported more than $5 billion in suspicious activity was not reported.
- The bank also agreed to an $11.6 million OFAC settlement, while the enforcement actions describe regulatory findings and admissions rather than a criminal conviction.
The U.S. Treasury’s Financial Crimes Enforcement Network announced a $1.2 billion penalty against Bank of America, saying the bank failed to mitigate and report national-security risks that included Chinese money-laundering networks and illicit finance near the southwest border. [1]
The Office of the Comptroller of the Currency separately assessed a $750 million civil penalty over deficiencies in the bank’s Bank Secrecy Act and anti-money-laundering compliance program. Reuters reported that regulators cited more than $5 billion in suspicious activity that was not reported. [2]
The Treasury also said the Office of Foreign Assets Control reached an $11.6 million settlement over apparent sanctions violations involving programs related to Iran, Russia, narcotics and terrorism. The Associated Press reported the combined enforcement action and quoted Treasury’s description of the risk to the financial system. [3]
The announcements detail regulatory penalties and a settlement; they are not a criminal conviction. The actions mark one of the largest penalties of their kind, while the lasting effect on the bank’s compliance operations and any additional supervisory steps remain to be seen. [1]
Why it matters
The penalties underscore the regulatory and national-security stakes of bank compliance systems, while leaving the long-term operational and supervisory effects to unfold.
Editor's note
Regulatory penalties and settlement are distinguished from criminal conviction.