Bank of America fined $1.2 B for AML lapses after missing Chinese money laundering
Bank of America fined $1.2 B for AML lapses
Bank of America was hit with a $1.2 billion penalty after U.S. regulators found the bank failed to stop more than $5 billion in suspicious activity linked to Chinese money‑laundering networks.
Key facts and figures
- Total fine: $1.2 billion ($750 million from OCC, the rest from FinCEN)
- OCC fine of $750 million is the agency’s largest civil penalty ever.
- Bank missed or delayed reports on $5 billion of suspicious activity.
- About $1 billion of that activity was tied to Chinese money‑laundering networks.
- Reported suspicious transactions included back‑to‑back credit‑card purchases, large ACH transfers, and wires to Chinese counterparties with generic descriptions.
- Bank of America stock fell from roughly $62.69 in mid‑September to below $50 on Oct 14.
What the OCC and FinCEN orders say
The Office of the Comptroller of the Currency (OCC) imposed a $750 million civil fine after finding Bank of America "willfully failed to implement and maintain adequate internal controls for BSA compliance." FinCEN issued a separate order for the remaining portion, citing the same failures and the bank’s inadequate due diligence on foreign correspondent accounts.
Context from Protos
The story was reported by Protos, which cited the OCC enforcement action and FinCEN order to detail how the bank’s weaknesses allowed more than $5 billion in suspicious activity to go undetected or unreported.
Confirmed details from the enforcement
- Bank of America admitted BSA and AML compliance program failures.
- Missing reports involved roughly $1 billion of national security‑related and other priority illicit finance risks.
- Specific transaction patterns flagged include high‑volume credit‑card purchases inconsistent with customer profiles and large wire transfers to Chinese entities with vague descriptions.
- Regulatory questionnaires for foreign branches and affiliates were completed by the bank either collectively or on a per‑branch basis.
Uncertainties in the report
The article does not explain why the internal controls failed or provide a timeline for remediation beyond the enforcement orders. The reasons behind the stock price decline are also not detailed.
Why this enforcement matters
The record‑sized fine signals regulators’ continued focus on anti‑money‑laundering (AML) compliance for major banks. Strict BSA enforcement helps protect the financial system from illicit flows, a concern that also applies to crypto‑related activities.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
Related Posts
Bitcoin stays below $80,000 as yen strengthens near 153 per dollar
21 major banks plan 2027 US dollar stablecoin to compete in $1.9T market
