Bank of America is taking a $1.2B non-tax-deductible charge, about 17c off Q3 EPS, after a $1.2B Treasury fine for AML failures. Treasury says it failed to report over $5B in suspicious activity, $1B

What happened: Bank of America was fined $1.2bn by the US Treasury for failing to detect potential money laundering and other illegal activity, and for not reporting over $5bn in suspicious activity. Key numbers: $1.2bn fine; over $5bn in suspicious activity unreported, $1bn of it posing national security and illicit finance risks; $750m OCC penalty, Why it matters: Treasury Secretary Scott Bessent said the failures expose the entire US financial system to significant illicit finance risks. The bank said it is far along in remediation, and the charge lands a day before quarterly earnings. Coverage: 10 outlets in 24h

Bank of America was fined $1.2bn by the US Treasury for failing to detect potential money laundering and other illegal activity, and for not reporting over $5bn in suspicious activity.

Treasury Secretary Scott Bessent said the failures expose the entire US financial system to significant illicit finance risks. The bank said it is far along in remediation, and the charge lands a day before quarterly earnings.