More than $1 billion of the unreported activity involved national security and other high-priority risks, including Chinese money-laundering networks and activity tied to the southwest border, Treasury said in a press release<\/a>.<\/p>\n The action also lands less than a day before the bank reports quarterly earnings<\/a> Wednesday morning.<\/p>\n Treasury’s Financial Crimes Enforcement Network, which enforces anti-money-laundering rules, said the $1.2 billion penalty is the third-largest in Treasury history. Treasury separately announced an $11.6 million settlement over sanctions violations.<\/p>\n Stock Chart IconStock chart icon Bank of America Corp. stock price<\/p>\n As part of the settlement, Bank of America admitted that it willfully violated the Bank Secrecy Act by failing to maintain a compliant anti-money-laundering program, conduct required due diligence on foreign correspondent accounts and file suspicious activity reports, according to Treasury.<\/p>\n “Today’s actions send a clear message that even the biggest financial institutions are not above the law,” Treasury Secretary Scott Bessent said in the press release.<\/p>\n Bank of America said in a statement to CNBC that the bank has invested billions in compliance and is “far along” in remediation efforts.<\/p>\n The bank said the penalties will result in a $1.2 billion non-tax-deductible charge in its third-quarter results, reducing net income by about 17 cents per share. It said remediation costs are already reflected in its current expense base.<\/p>\n “Financial crime compliance is serious, and we are responsible for getting it right,” spokesperson Christa Robinson said.<\/p>\n The bank’s stock was down about 2% in after-hours trading on the news.<\/p>\n The new penalties will put renewed focus on the record of longtime CEO Brian Moynihan<\/a>,\u00a0who took over in 2010 and spent the early years of his tenure resolving tens of billions of dollars in mortgage-related legal and regulatory matters tied largely to decisions made before he became CEO.<\/p>\n For much of the past decade, Moynihan has emphasized what he calls “responsible growth,” as Bank of America sought to distance itself from the risk-taking and legal problems that followed the 2008 financial crisis<\/a>.<\/p>\n Moynihan is scheduled to appear on CNBC’s “Squawk on the Street<\/a>” at 10:20 a.m. ET Wednesday following the bank’s earnings report.<\/p>\n Treasury says BofA “prioritized its revenues”<\/p>\n Treasury said the bank “prioritized its revenues” while minimizing the impact on compliance resources. The agency said the bank relied so heavily on law-enforcement inquiries and referrals from other financial institutions that regulators said it effectively outsourced part of its responsibility for detecting suspicious activity.\u00a0<\/p>\n The penalty from Treasury’s Financial Crimes Enforcement Network came in coordination with the Office of the Comptroller of the Currency, or OCC, an independent bureau within the department, which announced a $750 million civil money penalty<\/a> against Bank of America.<\/p>\n![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
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