Treasury said Bank of America fell short on filing suspicious activity reports for years and did not resolve longstanding weaknesses in its anti-money-laundering setup. Officials also said the bank prioritized revenue while limiting support for compliance, and relied to an excessive degree on inquiries from law enforcement and referrals from other banks, effectively shifting part of its responsibility to detect suspicious activity.
The Financial Crimes Enforcement Network assessed a $1.2 billion penalty, which Treasury called the third-largest in its history. Acting in parallel, OCC imposed a $750 million civil money penalty on Bank of America, with that amount counted toward the $1.21 billion total. According to Treasury, this represents the biggest penalty OCC has ever imposed. In a separate action, Treasury disclosed an $11.6 million settlement tied to sanctions breaches.
Penalties this size change how a bank prices and staffs compliance. Market Briefs covers that cost free every weekday.
Under the settlement, Bank of America acknowledged willful Bank Secrecy Act violations. Treasury Secretary Scott Bessent said, "Today's actions send a clear message that even the biggest financial institutions are not above the law." The bank told CNBC it has poured billions into compliance and is "far along" in remediation.
The timing is tight, arriving less than a day before the bank's Wednesday morning earnings release. The issue centers on Bank of America, the country's No. 2 bank by assets, and a penalty that Treasury places among its biggest. For everyday investors, the headline hit is quantified: a one-time $1.2 billion charge and a roughly 17-cent per-share dent to the quarter's net income.
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