Politics · Singapore Bureau
Bank of America hit with US$1.2b penalty for AML lapses
The US financial regulator has fined Bank of America US$1.2 billion for failing to properly report over US$5 billion in suspicious transactions. The penalty underscores ongoing compliance challenges at America's second-largest bank.
LSN Singapore ·
Bank of America has been ordered to pay US$1.2 billion to settle allegations that it failed to adequately detect and report suspicious financial activity, according to regulatory action announced by US authorities.
The enforcement action centres on the bank's anti-money laundering compliance failures over a multi-year period. Regulators determined that Bank of America did not properly monitor or report more than US$5 billion in transactions that should have triggered suspicion under US law.
The penalty represents one of the largest fines imposed on a major US lender for violations of anti-money laundering obligations. Such regulatory breaches expose banks to sanctions for failing to implement robust systems designed to prevent money laundering, terrorist financing, and other financial crimes.
Bank of America, as the second-largest bank in the United States by assets, is expected to maintain heightened compliance standards. The settlement requires the bank to strengthen its anti-money laundering programme and enhance its transaction monitoring systems.
The action reflects the US authorities' continued emphasis on enforcing anti-money laundering requirements across the banking sector, particularly among systemically important financial institutions.