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UNICZ criticises Bank of America over $1.21bn AML penalty
Changpeng Zhao questioned why no Bank of America executives faced criminal charges after the bank was fined more than $1.21bn for anti-money laundering and sanctions violations.
Why it matters: The case highlights the penalties banks face for compliance failures and the absence of criminal charges against executives, a contrast crypto figures have seized on.
Key points
- Bank of America admitted willfully violating the Bank Secrecy Act and failed to timely report more than $5bn in suspicious transactions.
- FinCEN assessed $1.2bn, the OCC imposed a record $750m credited toward it, and OFAC secured an $11.6m settlement over 475 apparent sanctions violations.
- Zhao, who served four months in federal prison over a Binance compliance violation before a October 2025 pardon, said no one was charged.
Changpeng Zhao, the founder of Binance, criticised Bank of America on Wednesday after the bank was hit with more than $1.21bn in federal penalties for anti-money laundering and sanctions violations, Bitcoin.com News reports. The bank admitted willfully violating the Bank Secrecy Act, and regulators said more than $5bn in suspicious transactions went unreported or were reported late. No executives faced criminal charges.
Zhao responded to an 14 Oct post about the enforcement action, writing that no one went to prison, faced home confinement, entered a deferred prosecution agreement or was even charged. His remarks followed Tuesday's announcement by the US Treasury Department of its third-largest penalty, against America's second-largest bank.
FinCEN assessed a $1.2bn penalty after finding the bank failed to identify, investigate and report suspicious activity. The OCC imposed a separate record $750m penalty, credited toward FinCEN's assessment, while OFAC secured an $11.6m settlement over 475 apparent sanctions violations.
Bank of America expects a $1.2bn non-tax-deductible charge against third-quarter earnings, about 17 cents per share, and says it has invested billions in compliance technology. The settlement requires an independent review of missed transactions and further compliance improvements. Commentators including Lark Davis and Zerohedge also weighed in on the case.
What to watch: Bank of America must carry out an independent review of previously overlooked transactions and strengthen its compliance controls under the settlement.
Live updates on NewsFeeds:RegulationDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
How this was produced: an AI model wrote this summary of Bitcoin.com News’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.
Not investment advice. Read the risk disclaimer.