Bank of America Hit With $1.2 Billion Money-Laundering Fine
The U.S. Treasury cited failures to report more than $5 billion in suspicious activity, while the bank expects a hit to quarterly profit.
Key takeaways
- The Treasury imposed a $1.2 billion fine on Bank of America.
- The bank said the charge will reduce quarterly profit by about 17 cents per share.
The U.S. Treasury imposed a $1.2 billion fine on Bank of America over failures in anti-money-laundering controls and other violations. The department said it was the third-largest fine it had ever issued.
The bank failed to report more than $5 billion in suspicious activity, including transactions that posed national security risks, the Treasury said. The fine includes an $11.6 million payment tied to a settlement over sanctions violations involving Iran and Russia, among others.
Bank of America said its third-quarter results, due Wednesday, will include a nondeductible $1.2 billion charge that will cut quarterly profit by about 17 cents per share. A court document says the bank will allow external auditors to review suspicious transactions.
BAC shares were at $53.96, down 1.14% from the previous close, as of 20:00 UTC on Oct. 13.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
