Bank of America fined $1.2bn for money-laundering failures

· Politics · United States

US regulators fined Bank of America $1.21 billion for widespread failures to detect potential money laundering and other illicit activity, the third-largest penalty in US Treasury history. The Treasury said the bank inadequately flagged transactions linked to potential Chinese money-laundering networks. The penalty will hurt Bank of America's third-quarter earnings, and its shares fell after the company also posted weaker-than-expected trading revenue. Separately, the Treasury said its findings indicate the largest US banks let politics influence who received banking services, lending weight to President Donald Trump's claims that major banks discriminated against conservatives.

Why it matters：The record-scale penalty shows tougher US enforcement on bank compliance and could shape how lenders screen politically sensitive clients.

Key points

  • The $1.21bn fine is the third-largest in Treasury history.
  • Regulators faulted the bank over transactions tied to Chinese money-laundering networks.
  • Separately, Treasury flagged political influence in bank services.

Sources (original reporting)

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