Bank of America Fined Over $1.2 Billion for Anti-Money Laundering Failures, Impacts Q3 Results

• Bank of America fined over $1.2 billion by U.S. regulators for anti-money laundering failures.
• Penalty impacted Q3 profit and contributed to a 6 percent drop in BofA shares.
• Fine linked to $5 billion in unreported suspicious transactions, including national security risks.

Bank of America (BofA) has been levied with federal penalties exceeding $1.2 billion by U.S. regulators, including the U.S. Department of the Treasury, for long-standing anti-money laundering failures. The bank reportedly failed to report over $5 billion in suspicious transactions, some linked to national security risks and Chinese money-laundering networks. This substantial fine directly impacted BofA’s third-quarter earnings, contributing to a drop in overall profit. The regulatory charge, alongside weaker trading performance with bond-trading revenue falling 17% and equity trading down 10%, weighed on the bank’s financial results. Following the news, Bank of America shares experienced a decline of approximately 6 percent in pre-market trading on the NYSE. Despite these challenges, the bank reported increased revenues driven by higher net interest income and growth in its Consumer Banking and Global Wealth and Investment Management divisions.