A class action lawsuit has accused Bank of America of hiding major anti-money-laundering failures from its investors.
The suit alleges the bank assured shareholders that its compliance programs were sound while its systems were failing, reports InvestmentNews.
The complaint was filed in federal court in New York on November 12th.
A December 2024 consent order from the Office of the Comptroller of the Currency found that the bank’s subsidiary did not maintain effective anti-money-laundering and sanctions compliance programs, the complaint says. Court documents show that the OCC found issues with internal controls, testing, training and oversight.
On October 13th, the US Treasury Department announced more than $1.21 billion in penalties against Bank of America for violations of anti-money-laundering and sanctions laws.
The complaint alleges the subsidiary admitted it willfully violated federal anti-money-laundering law and missed reporting over $5 billion in suspicious transactions to the Financial Crimes Enforcement Network.
The suit also alleges that the bank “prioritized its revenues and minimized the impact on its required compliance resources.”
Bank of America’s stock fell about 4.7% to $51.39 the next day.
The suit covers investors who bought common stock or Series QQ preferred depositary shares between January 20th, 2022 and October 13th, 2026.
The allegations have not been tested, and no court has ruled on the claims.
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The post Bank of America Sued by Investors Who Claim Bank Hid Anti-Money-Laundering Failures Before Over $1,210,000,000 in Penalties appeared first on The Daily Hodl.
A class action lawsuit has accused Bank of America of hiding major anti-money-laundering failures from its investors. The suit alleges the bank assured shareholders that its compliance programs were sound while its systems were failing, reports InvestmentNews. The complaint was filed in federal court in New York on November 12th. A December 2024 consent order
The post Bank of America Sued by Investors Who Claim Bank Hid Anti-Money-Laundering Failures Before Over $1,210,000,000 in Penalties appeared first on The Daily Hodl. Banking, Scams, Hacks & Breaches, bank of america, class action, money laundering, News
This articles is written by : Nermeen Nabil Khear Abdelmalak
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