US regulators fined Bank of America $1.21 billion over failures to detect and report over $5 billion in suspicious financial activity, which the Treasury Department noted included national security risks.
The Office of the Comptroller of the Currency imposed a record $750 million civil penalty linked to shortcomings from a 2024 cease-and-desist order, while the bank also paid an $11.6 million penalty for sanctions breaches.
Bank of America stated that the non-deductible charge will reduce third-quarter net income by about 17 cents per share, and shares fell 2.7% in after-hours trading on Tuesday.