Federal regulators looking at Bank of America anti-money laundering programs
Federal regulators are looking at Bank of America’s anti-money laundering program, the Charlotte-based company stated Tuesday in its latest quarterly earnings report.
The bank said it’s communicating with the feds about its Bank Secrecy Act/Anti-Money Laundering and Economics Sanctions Compliance programs. This includes training, governance, transaction monitoring and customer due diligence — a verification process to prevent financial crime and fraud.
In the 10-Q report, Bank of America said it’s working to make improvements to the programs in cooperation with regulators. The bank said it is “continuing discussions with its regulators about the programs, and resolution of these discussions may include one or more public orders by the regulators.“
Bank of America declined to comment to The Charlotte Observer.
There’s been intense scrutiny of money laundering practices recently. About three weeks ago, TD Bank pleaded guilty for failing to maintain an anti-money laundering program that complies with the Bank Secrecy Act and not filing accurate reports.
TD Bank made its services “convenient for criminals” to operate three money laundering networks with $670 million transferred through accounts between 2019 and 2023, the U.S. Department of Justice reported. TD Bank agreed to pay $3 billion in a settlement with federal authorities and became the first bank to plead guilty to money laundering, according to Law360, a news service for lawyers.
CFPB scrutiny over Bank of America Zelle network
Bank of America is also facing scrutiny from the Consumer Financial Protection Bureau regarding Zelle, a digital payment network used by large banks, according to Bank of America quarterly report.
The bureau had launched an inquiry about Bank of America’s processing of electronic payments of funds through the Zelle network.
The CFPB is talking to the bank about either finding a resolution to the inquiry or filing an enforcement action. Bank of America said it’s evaluating next steps, including litigation.
The bank employs more than 19,000 employees in the Charlotte region, part of 213,000 workers across the company. It is the second-largest bank in the U.S.
This story was originally published October 30, 2024 at 2:17 PM.
