Bank of America Settles With OCC Over Anti-Money Laundering Concerns

Core Viewpoint - Bank of America (BAC) received a cease-and-desist order from the Office of the Comptroller of the Currency (OCC) due to deficiencies in its Bank Secrecy Act (BSA) and sanctions compliance programs [4][9]. Group 1: Regulatory Issues - The OCC's order highlights BAC's violations and unsafe practices regarding BSA compliance, including failure to report suspicious activities and deficiencies in Customer Due Diligence processes [9][10]. - The order requires BAC to implement remedial measures, including appointing an independent consultant to evaluate its compliance programs and conduct reviews of suspicious activities [10]. - BAC has faced additional regulatory scrutiny, including a lawsuit from the U.S. Consumer Financial Protection Bureau (CFPB) for failing to protect consumers from fraud on the Zelle payment network, with losses exceeding $870 million reported by customers of BAC, JPMorgan, and Wells Fargo [12][13]. Group 2: Financial Performance - Over the past six months, BAC's shares have increased by 11.5$200 million lawsuit against BAC, alleging the bank refused to cover legal costs related to risky mortgages issued before the 2008 financial crisis [6]. - BAC has neither admitted nor denied the charges from the OCC and does not expect a material impact on its financials from the order [11].