US Treasury Imposes Massive Fines on Second-Largest US Bank for Violating Anti-Money Laundering and Sanctions Laws

Washington, Oct 13 (KUNA) – The U.S. Department of the Treasury announced on Tuesday the imposition of fines exceeding $1.21 billion on Bank of America, the second-largest bank in the United States, following allegations of violations of anti-money laundering and sanctions laws. The Treasury said in a statement that these measures represent “the third-largest fine in the history of the Department of the Treasury and the largest fine in the history of the Office of the Comptroller of the Currency.” It noted that the Financial Crimes Enforcement Network (FinCEN) imposed a fine of $1.2 billion due to the bank’s failure to mitigate and report national security-priority risks, including Chinese money laundering networks and illicit financing along the southwestern border. The Office of the Comptroller of the Currency levied a civil monetary penalty of $750 million due to deficiencies and ineffectiveness in the bank’s compliance program for the Bank Secrecy Act and anti-money laundering requirements. Additionally, the Treasury’s Office of Foreign Assets Control (OFAC) announced a $11.6 million settlement with the bank over clear violations of several sanctions programs, including those related to Iran, Russia, drugs, and global terrorism. Treasury Secretary Scott Bessent said in a statement, “Financial institutions stand on the front lines of protecting our economic and national security. When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend beyond the bank itself, exposing the entire U.S. financial system to significant illicit finance risks.” Bessent emphasized that today’s actions “send a clear message that even the largest financial institutions are not above the law.” The Treasury stated that these measures collectively underscore “the importance of effective compliance with U.S. anti-money laundering, counter-terrorist financing, and sanctions requirements.” It added that “given the interconnected nature of risks related to anti-money laundering, counter-terrorist financing, and sanctions, financial institutions should ensure that compliance efforts in these areas are effectively integrated so that they reinforce one another.” (End) R.S.R. / R.J.