Bank of America Hit With $1.2 Billion Penalty Over Money Laundering Failures, Admits Willful Violations

Bank of America (BAC) was fined $1.21 billion by the U.S. Treasury for anti-money laundering and sanctions law violations. The penalties include $1.2 billion for national security risks, $750 million for compliance failures, and $11.6 million for sanctions breaches. The bank admitted to willful violations and inadequate due diligence. BAC will report Q3 earnings on October 14.

Bank of America was fined $1.21B by the Treasury Department for violating the Bank Secrecy Act, including failing to report over $5B in suspicious transactions. The bank admitted prioritizing revenue over compliance, leading to late reports of money laundering and sanctions violations. Bank of America expects a $1.2B charge in Q3, reducing net income by about 17 cents per share. The stock fell 1.1% during trading and 2% after hours.

Bank of America faces a $1.2 billion fine from US authorities for anti-money laundering failures and sanctions violations. The bank settled $11.6 million in alleged violations involving Iran and Russia. Treasury cited failures to report over $5 billion in suspicious transactions, including $1 billion linked to national security risks. The penalty includes a $750 million fine from the Office of the Comptroller of the Currency, the largest ever imposed by the regulator.

The US Treasury fined Bank of America $1.2B for failing to report $5B in suspicious transactions, including Chinese money-laundering networks. The bank admitted the fine will impact its Q3 earnings, reducing net income by $0.17 per share. Treasury also cited violations of sanctions programs and ordered BofA to improve its monitoring and reporting.

Bank of America faces a $1.21B Treasury penalty for anti-money-laundering and sanctions violations, reducing Q3 net income by ~17 cents per share. The bank admitted to failing to report over $5B in suspicious transactions. Analysts expect Q3 EPS of $1.12 on revenue of $30.62B. Shares fell 1.14% to $53.96 on Tuesday and 2.29% in after-hours trading.

The US Treasury imposed over $1.2 billion in penalties on Bank of America for violating anti-money laundering and sanctions laws, including failing to report $5 billion in suspicious transactions. The bank's shares fell 2.6% in after-hours trading. The penalties include $1.2 billion from FinCEN and $750 million from the OCC, with an additional $11.6 million settlement from OFAC. Bank of America will take a $1.2 billion charge in its Q3 earnings, reducing net income by 17 cents per share.