From BBC News · · 1m 10s
Bank of America fined $1.2bn for money laundering failures
The US Treasury Department penalises Bank of America for failing to detect and report over $5bn in suspicious activity, including potential Chinese money laundering networks.
In brief
The US Treasury Department penalises Bank of America for failing to detect and report over $5bn in suspicious activity, including potential Chinese money laundering networks. Bank of America was fined one point two billion dollars by the US Treasury for failing to report over five billion dollars in suspicious…
Bank of America hit with $1.2bn fine
The US Treasury Department fined Bank of America one point two billion dollars on Tuesday for failing to detect potential money laundering and other illegal activity.
Bank failed to report $5bn in suspicious activity
Bank of America failed to report over five billion dollars in suspicious activity to the government, one billion dollars of which posed national security and illicit finance risks.
Failures included Chinese money laundering networks
The failures included not flagging transactions possibly involving Chinese money laundering networks or trade-based laundering with a substantial nexus to the southwest border.
Bank outsourced detection to third parties
The Treasury said Bank of America overly relied on inquiries from law enforcement and other financial institutions instead of its own internal controls, effectively outsourcing detection obligations.
“When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls, exposing the entire US financial system to significant illicit finance risks.”
The big picture
Bank of America was fined one point two billion dollars by the US Treasury for failing to report over five billion dollars in suspicious activity and for willfully violating anti-money laundering laws.
