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Senator Elizabeth Warren is demanding that the Justice Department launch a criminal investigation into Bank of America and its leadership following the banking institution’s admission of willful violations regarding federal anti-money-laundering laws, as reported by US Top News and Analysis (cnbc.com).
Call for Criminal Charges
The Massachusetts Democrat and ranking member of the Senate banking committee characterized the penalties exceeding $1.2 billion levied against the bank on October 13 as a mere “slap on the wrist.” She pressed Attorney General Todd Blanche to evaluate whether criminal charges are appropriate in this case.
“The documented violations by Bank of America allowed illicit actors to move billions through the U.S. financial system,” Warren wrote in her letter.
She established a deadline of November 12 for the DOJ to clarify whether an investigation into the conduct has already occurred and, if not, if one is planned. Representatives for Bank of America and the Justice Department did not immediately reply to requests for comment.
Treasury Enforcement Actions
This correspondence follows closely after Treasury regulators accused the country’s second-largest financial institution of enduring, severe compliance breakdowns in what stands as one of the most substantial anti-money-laundering enforcement cases in the department’s existence.
During the settlement with the Financial Crimes Enforcement Network under the Treasury Department, Bank of America acknowledged that it intentionally breached the Bank Secrecy Act by neglecting to sustain an effective anti-money-laundering framework and properly submit reports on suspicious activities.
Regulators pointed out that the bank delayed reporting upwards of $5 billion in suspicious transactions. Among these, more than $1 billion encompassed national security and additional high-priority dangers, featuring operations pointing to Chinese money-laundering rings and financial movements connected to the southwestern border of the United States.
The Treasury noted that Bank of America occasionally “prioritized its revenues” over regulatory adherence, depending heavily on law enforcement investigations and tips from alternative financial entities to uncover suspicious behavior rather than utilizing its internal mechanisms.
Penalties and Previous Warnings
Authorities issued penalties surpassing $1.2 billion, which featured a historic $750 million fine originating from the Office of the Comptroller of the Currency. These regulatory measures omitted any criminal counts directed at the bank or its directors.
Following the disclosure of these actions, the bank stated that it had channeled billions of dollars into compliance measures and was “far along” in resolving the difficulties.
Warren contends that financial penalties alone remain inadequate.
“Civil fines have become the cost of doing business on Wall Street,” she wrote, referencing federal statutes that permit both criminal and civil sanctions for intentional breaches of the Bank Secrecy Act.
Bank of America was previously functioning under a cease-and-desist directive issued in 2024 concerning flaws in its anti-money-laundering safeguards. Regulators indicated this month that the institution had failed to exhibit adequate progress in correcting several of those ongoing issues.
