Bank of America Agrees to Consent Order Over Anti-Money-Laundering Deficiencies
From the desk of Jim Eccleston at ÍøÆسԹÏ
Bank of America Corp. has entered into a consent order with the Office of the Comptroller of the Currency (OCC) to address deficiencies in its anti-money-laundering (AML) and sanctions compliance programs. According to AdvisorHub, the agreement follows allegations that the bank failed to file suspicious activity reports (SARs) on time and lacked adequate due-diligence processes.
Under the order, Bank of America must take corrective actions, including hiring an independent consultant to review its policies and ensure all suspicious activities are properly reported. AdvisorHub reports that the consent order does not involve monetary penalties, and the bank neither admitted nor denied the allegations.
In an emailed statement, a representative for Bank of America said the institution has been working closely with the OCC to enhance its AML and sanctions programs.
"The work we have done so far positions us well to implement the requirements of the consent order,” the representative added.
In October, the bank disclosed that U.S. regulators were scrutinizing its compliance programs, including transaction monitoring, governance, training, and customer due diligence. Bank of America stated it was cooperating fully and had already begun improving its systems.
While regulatory outcomes for AML violations can vary significantly - from remedial orders to multi-billion-dollar fines - Bank of America said it does not expect the reviews to result in any material adverse financial impact.
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