Bank of America Faces More Than $1.21 Billion in Penalties Over Money Laundering and Sanctions Failures
From the desk of Jim Eccleston at Eccleston Law
Federal regulators have imposed more than $1.21 billion in penalties against Bank of America for anti-money laundering and compliance failures. Regulators found that the bank relied on law enforcement inquiries and requests from other financial institutions rather than proactively identifying suspicious activity, according to AdvisorHub.
The enforcement actions announced by the Treasury Department include a record $750 million civil penalty from the Office of the Comptroller of the Currency (OCC). The Office of Foreign Assets Control (OFAC) also reached a settlement with the bank involving 475 apparent violations of U.S. sanctions programs, including restrictions involving Russia and Iran. Regulators also placed the bank under a consent order.
According to AdvisorHub, the Treasury Department alleged that Bank of America effectively transferred a substantial portion of its responsibility to detect and report suspicious activity to third parties while limiting the resources devoted to compliance.
The enforcement action follows increased regulatory scrutiny of financial institutions' anti-money laundering programs. Regulators fined American Express $350 million the previous week for failures to detect and report money laundering activity.
Treasury Secretary Scott Bessent emphasized the broader consequences of compliance failures at large financial institutions. He warned that a bank's failure to meet anti-money laundering and sanctions obligations exposes the entire U.S. financial system to illicit finance risks. He also stressed that regulators would hold even the largest financial institutions accountable.
The penalties stem in part from deficiencies outlined in a 2024 consent order between Bank of America and the OCC. According to a bank spokesperson cited by AdvisorHub, the earlier order addressed the bank's failure to file suspicious activity reports on time and maintain an adequate anti-money laundering program.
Bank of America has faced other regulatory enforcement actions in recent years. In 2022, regulators imposed a $225 million penalty over unfair and deceptive practices involving the bank's prepaid card program for distributing unemployment insurance benefits.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
Tags: eccleston, eccleston law, anti-money laundering, regulatory compliance, bank of america, sanctions violations, financial penalties
