US regulators fine Bank of America $1.2 billion over laundering failures
The Financial Crimes Enforcement Network, or Fincen, fined Bank of America $1.2 billion for anti-money-laundering violations, a penalty expected to weigh on its third-quarter earnings and renew scrutiny of its compliance controls.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
What happened
US regulators fined Bank of America $1.2 billion for anti-money-laundering violations, saying the bank failed to detect and report billions of dollars in suspicious transactions. The penalty is hitting the lender's third-quarter earnings and has drawn fresh scrutiny of its compliance controls. The Financial Crimes Enforcement Network, known as Fincen, issued the order against the bank.
Why it matters
The fine has raised questions about the bank's compliance controls and whether it is a warning for other Wall Street firms. Commentators say the case exposes aging anti-money-laundering systems across banking.
Timeline
- Oct 19, 8:20 AM ET: Regulators fined Bank of America for anti-money-laundering violations.
- Oct 19, 9:03 AM ET: The $1.2 billion penalty was reported to be hitting the bank's third-quarter earnings, prompting fresh scrutiny of its compliance controls.
- Oct 20, 10:30 AM ET: Commentary argued the fine is a warning to Wall Street and called for a fundamental restructuring of financial crime education in the private sector.
Coverage
- Why Bank of America’s AML Failure Is a Wall Street Warning (gfmag.com)
- Bank of America’s fine is a warning to Wall Street (The Hill)
- What banks can learn from Fincen's penalty against BofA (americanbanker.com)
- Bank Of America Reeling From $1.2bn Money Laundering Fine (bankingexchange.com)
- Should You Buy Bank of America Stock After a $1.2 Billion Regulatory Fine? (Yahoo News)
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