Bank of America warned of potential monetary penalties in a recent securities filing regarding its anti-money laundering (AML) program. The disclosure marks a shift from the bank's previous stance that the issues would lack a material financial impact.
Potential penalties relate to a December 2024 consent order from the Office of the Comptroller of the Currency (OCC). Regulators cited deficiencies in internal controls, governance, and suspicious activity reporting.
Bank of America is currently negotiating with regulators to resolve the matter. The bank is overhauling its AML protocols and has hired a third-party consultant to review its compliance framework.