US Treasury Fines Bank of America $1.2 Billion Over Money Laundering and Sanctions Violations
On Tuesday, the US Treasury Department revealed it would impose fines totaling $1.2 billion on Bank of America for breaches of anti-money-laundering and sanctions regulations. The Treasury stated that the bank did not adequately address and report what it termed 'priority national security risks,' which included networks involved in Chinese money laundering. This penalty marks the third-largest ever imposed by the department and affects the nation’s second-largest bank. Treasury Secretary Scott Bessent emphasized that the repercussions of such failures reach beyond the institution itself, threatening the entire US financial system with significant risks of illicit finance. He underscored that this action serves as a strong reminder that no financial entity is above the law.
Key facts
- The US Treasury Department imposed $1.2 billion in fines on Bank of America.
- The fines were announced on Tuesday.
- The Treasury alleges Bank of America violated anti-money-laundering and sanctions laws.
- The bank failed to mitigate and report 'priority national security risks,' including Chinese money-laundering networks, according to the Treasury.
- The penalty is the third-largest in the Treasury Department's history.
- Bank of America is America's second-biggest bank.
- Treasury Secretary Scott Bessent said the consequences of such failures extend beyond the bank's own walls and expose the entire US financial system to significant illicit finance risks.
- Bessent said the actions send a clear message that even the biggest financial institutions are not above the law.
Entities
Artists
- Scott Bessent
Institutions
- Bank of America
- US Treasury Department
Locations
- United States
- China