BofA fined $1.2 billion by US government for failing to police suspicious activity
BAC•The US government fined Bank of America $1.21 billion for failures to report more than $5 billion in suspicious activity. The bank said its third-quarter results will include a $1.2 billion non-tax-deductible charge, reducing net income by about 17 cents per share.
1. Treasury cites reporting failures
The Treasury Department said Bank of America failed to report more than $5 billion in suspicious activity, including $1 billion involving national security-related and other priority illicit finance risks. It said the bank relied too heavily on outside inquiries instead of its own controls.
2. Regulators impose penalties
The Office of the Comptroller of the Currency levied a record $750 million civil penalty, citing failures to address anti-money laundering shortcomings identified in a 2024 cease-and-desist order. The Office of Foreign Assets Control also fined the bank $11.6 million for more than 400 apparent sanctions violations involving payments targeting countries including Russia and Iran.
3. Charge to hit quarterly results
Bank of America said its third-quarter results, due Wednesday, will include a $1.2 billion non-tax-deductible charge that will reduce quarterly net income by about 17 cents per share. Shares were down 1.8% in after-hours trading.
