Bank of America faces more than $1.2 billion in US penalties after regulators said it failed for years to report suspicious transactions and fix anti-money-laundering controls.
01Summary
- 01Treasury said Bank of America failed to report more than $5 billion in suspicious transactions over several years.
- 02More than $1 billion of the unreported activity involved national security and other high-priority risks, including Chinese money-laundering networks and activity tied to the south-west border.
- 03The Treasury Department's action includes a $1.2 billion penalty, the third-largest in Treasury history, plus an $11.6 million sanctions settlement.
- 04The Office of the Comptroller of the Currency separately imposed a $750 million civil money penalty, its largest ever against a bank.
- 05Bank of America said the penalties will result in a $1.2 billion non-tax-deductible charge in third-quarter results, cutting net income by about 17 cents per share.
02Why it matters
The fines are a major hit to one of the US's biggest banks and could affect its near-term profits. They also put fresh pressure on Bank of America's compliance record and on CEO Brian Moynihan ahead of earnings.
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