Summary
Bank of America has been fined $1.21 billion by U.S. regulators for failing to detect and report over $5 billion in suspicious transactions. The penalty is one of the largest ever and will reduce the bank’s earnings in the third quarter.Key Facts
- The U.S. Treasury Department fined Bank of America $1.21 billion for poor anti-money laundering controls.
- The bank failed to report more than $5 billion in suspicious activity, including $1 billion related to national security risks.
- The bank relied too much on outside reports instead of its own checks.
- Bank of America must hire an independent party to review past transactions and report missed suspicious activity.
- The Office of the Comptroller of the Currency also fined the bank $750 million for AML program failures.
- The Office of Foreign Assets Control fined the bank $11.6 million for violating sanctions on countries like Russia and Iran.
- The fines will reduce the bank’s third-quarter earnings by about 17 cents per share.
- Bank of America’s shares fell after the fine was announced, and this may affect its future stock buybacks.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
