Bank Of America Penalty Exposes Failures In Compliance Controls Arabian Post

(MENAFN- The Arabian Post) clearfix"> Bank of America's $1.2 billion anti-money laundering charge has intensified scrutiny of outdated compliance systems after US regulators identified extensive failures to detect and report suspicious transactions.

The penalty, disclosed alongside the bank's third-quarter results on October 14, reduced earnings by 17 cents a share and highlighted the financial consequences of weaknesses that regulators said persisted despite earlier warnings and corrective commitments.

The bank reported quarterly net income of $6.9 billion, or 91 cents per diluted share, compared with $8.3 billion, or $1.04 a share, a year earlier. Excluding the non-tax-deductible regulatory charge, earnings were $1.08 a share.

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