Bank of America faces a $1.21bn penalty from US regulators for widespread failures to detect money laundering and report suspicious activity. The fine ranks as the third-largest in US Treasury Department history.
The Treasury Department cited the bank's failure to report more than $5bn in suspicious transactions. Of that amount, $1bn posed national security-related and other priority illicit finance risks, the regulator stated.
Bank of America acknowledged the penalty will reduce third-quarter earnings.
The fine represents a significant enforcement action against the nation's second-largest bank by assets. No other details about the violations, their timeframe, affected customers or the bank's response were provided in the available material.