Politics · India Bureau
US imposes record $1.2 billion fine on Bank of America for money laundering lapses
The US Treasury Department has slapped Bank of America with $1.2 billion in penalties for failing to adequately enforce anti-money laundering and sanctions compliance measures. The fine represents the third-largest in the Treasury's enforcement history.
LSN India ·
The Financial Crimes Enforcement Network, part of the US Treasury Department, issued the substantial penalty against America's second-largest bank on Tuesday, citing systemic failures in its financial crime prevention protocols. Treasury Secretary Scott Bessent said in a statement that the enforcement action underscores the serious consequences when major financial institutions neglect their regulatory obligations.
"When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls, exposing the entire US financial system to significant illicit finance risks," Bessent said. The Treasury stressed that the action demonstrates that even the largest financial institutions remain subject to the law.
In addition to the primary fine, Bank of America agreed to an $11.6 million settlement with the Treasury's Office of Foreign Assets Control over alleged violations of multiple sanctions programmes. The violations encompassed restrictions related to Iran, Russia, narcotics trafficking, and global terrorism designations, according to Treasury officials.
The enforcement actions reflect heightened scrutiny of major banking institutions' compliance infrastructure as regulators worldwide intensify efforts to combat financial crime and prevent illicit funds from flowing through the global financial system.