US Treasury Imposes $1.96 Billion Fine on Second-Largest US Bank
US Treasury Department fines Bank of America for violations of anti-money laundering laws and sanctions
Translated by Qiyas from السياسة — Original source
- Due to violations of anti-money laundering laws and sanctions
Bessent: Even the largest financial institutions are not above the law
The U.S. Department of the Treasury announced on Tuesday the imposition of financial penalties on Bank of America, the second-largest bank in the United States, due to violations of U.S. anti-money laundering laws and sanctions.
In a statement, the Treasury Department clarified that the actions taken against the bank represent the third-largest fine in the history of the Treasury Department 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 $1.2 billion fine on the bank for failing to mitigate and report high-priority risks affecting national security, including activities of Chinese money laundering networks and illicit financing along the U.S. southwestern border.
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It added that the Office of the Comptroller of the Currency imposed a civil penalty of $750 million due to deficiencies and ineffectiveness in the bank’s compliance program for the Bank Secrecy Act and anti-money laundering regulations.
It further noted that the Office of Foreign Assets Control (OFAC) announced a settlement agreement with the bank valued at $11.6 million regarding potential violations of several U.S. sanctions programs, including those related to Iran, Russia, drugs, and global terrorism.
The statement quoted U.S. Treasury Secretary Scott Bessent as saying that financial institutions stand on the front lines of protecting the United States’ economic and national security, warning that the failure of a bank of this magnitude to meet its anti-money laundering and sanctions obligations does not only impact the bank itself, but also exposes the entire U.S. financial system to significant risks associated with illicit financing.
Bessent emphasized that these actions send a clear message that even the largest financial institutions are not above the law.
The Treasury Department affirmed that the measures taken reflect the importance of effective compliance with U.S. requirements regarding anti-money laundering, counter-terrorism financing, and sanctions regimes.
It stressed the need for financial institutions to integrate their compliance efforts with anti-money laundering, counter-terrorism financing, and sanctions requirements, given the interconnected nature of risks in these areas, thereby ensuring the enhanced effectiveness of compliance measures.
