Bank of America to Pay $1.2B Over Sanctions and Money-Laundering Violations
The Treasury penalty landed the same day the bank's quarterly revenue came in below expectations.
MarketBuzz Daily · · $BAC
Bank of America has been ordered to pay $1.2 billion to the U.S. Treasury Department. The agency said the bank violated anti-money laundering and sanctions laws.
The bank will book the penalty as a $1.2 billion charge that is not tax-deductible. That cuts third-quarter net income by about 17 cents per share.
Shares fell almost 5% after the earnings report. Third-quarter revenue missed expectations. The bank must also undergo a third-party review of transactions that went undetected.
“Bank of America failed to timely report to FinCEN over $5 billion dollars in suspicious transactions.”— U.S. Treasury Department, in a statement (as quoted by NBC News), as reported by NBC News
Key points
- Treasury ordered a $1.2 billion payment over alleged anti-money laundering and sanctions violations.
- The charge is non-tax-deductible and trims Q3 earnings by about 17 cents per share.
- Shares dropped almost 5% as revenue missed expectations.
What it could mean for $BAC
The penalty could keep compliance in focus for the bank. The required outside review may add scrutiny and costs. Investors will be watching whether the revenue miss and the charge change how they see earnings in the quarters ahead.
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