{"id":572069,"date":"2026-10-14T11:10:28","date_gmt":"2026-10-14T10:10:28","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=572069"},"modified":"2026-10-14T10:25:58","modified_gmt":"2026-10-14T09:25:58","slug":"bank-of-america-backed-strict-crypto-aml-rules-before-admitting-5-billion-reporting-failure","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/bank-of-america-backed-strict-crypto-aml-rules-before-admitting-5-billion-reporting-failure\/","title":{"rendered":"Bank of America backed crypto AML rules but reported over $5 billion in suspicious activity late"},"content":{"rendered":"<p>In December 2023, Senator Elizabeth Warren asked Bank of America CEO Brian Moynihan whether crypto companies handling financial transactions should follow the same anti-money-laundering rules as banks.<\/p>\n<p>&#8220;Absolutely,&#8221; he said. On Oct. 13, Treasury announced more than $1.2 billion in penalties against his bank. FinCEN found that Bank of America admitted to willfully violating the Bank Secrecy Act and failed to report over $5 billion in suspicious transactions on time.<\/p>\n<h2>What regulators found at Bank of America<\/h2>\n<p><a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sb0657\/\">FinCEN assessed $1.2 billion<\/a>, including the <a href=\"https:\/\/x.com\/USComptroller\/status\/2110103128121168194?s=20\">OCC's $750 million penalty<\/a>, the largest civil money penalty the OCC has assessed against a bank. OFAC separately announced an $11.6 million settlement covering 475 apparent sanctions violations.<\/p>\n<p>FinCEN says the bank admitted violations in three areas: its AML program, due diligence on foreign correspondent accounts and the filing of suspicious activity reports.<\/p>\n<p>More than $1 billion of the late-reported transactions involved priority illicit-finance and national-security risks, including Chinese money laundering networks and potential trade-based laundering near the southwestern border.<\/p>\n<p>The OCC found deficient transaction monitoring across trillions of dollars in activity, late reports involving billions, insufficient BSA staff expertise, inadequate training, audit failures and weak remediation of a December 2024 cease-and-desist order.<\/p>\n<p>Treasury said the bank relied too heavily on law-enforcement inquiries, referrals from other institutions, and external interventions to identify suspicious activity, with its internal monitoring systems playing a smaller role.<\/p>\n<p>Comptroller Jonathan Gould described the second-largest US bank as processing hundreds of trillions of dollars annually, carrying a high and increasing illicit-finance risk profile and showing &#8220;widespread breakdowns&#8221; since the 2024 order.<\/p>\n<p>The findings span several years, including the period since Moynihan's Senate testimony. The $5 billion measures suspicious transactions reported late, rather than an established total of laundered money.<\/p>\n<h2>The banking lobby's crypto push<\/h2>\n<p>At the <a href=\"https:\/\/cryptoslate.com\/id-close-it-down-jamie-dimon-endorses-crypto-ban-in-senate-hearing\/\">Dec. 6, 2023 Senate Banking Committee hearing<\/a>, Warren first asked whether Bank of America had systems to detect, report, and stop potential terrorist-financing activity, and Moynihan answered yes.<\/p>\n<p><a href=\"https:\/\/cryptoslate.com\/people\/elizabeth-warren\/\">Warren<\/a> then asked about crypto companies, and he <a href=\"https:\/\/www.warren.senate.gov\/news\/press-releases\/at-hearing-big-bank-ceos-agree-with-warren-on-need-to-apply-anti-money-laundering-rules-to-crypto-companies-to-protect-national-security\/\">replied &#8220;Absolutely,&#8221;<\/a> endorsing equivalent AML obligations for crypto firms that handle financial transactions.<\/p>\n<p>Moynihan sits on the Bank Policy Institute board and has served as its chair, according to Bank of America's investor materials.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/id-close-it-down-jamie-dimon-endorses-crypto-ban-in-senate-hearing\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">&#8216;I'd close it down': Jamie Dimon endorses crypto ban in Senate hearing<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>In August 2026, BPI published a policy paper titled &#8220;Same Risks, Same Safeguards.&#8221; It argues that digital asset rules leave illicit-finance gaps in secondary markets, including exchanges, custodians, and DeFi firms, with a particular focus on stablecoin activity.<\/p>\n<p>BPI also <a href=\"https:\/\/cryptoslate.com\/wall-street-banks-back-elizabeth-warrens-digital-asset-anti-money-laundering-act\/?amp=1\">endorsed 2023 efforts<\/a> to extend Bank Secrecy Act requirements across the digital asset industry.<\/p>\n<h2>Crypto uses the case<\/h2>\n<p>Figure executive Mike Cagney has pointed to the Bank of America action while arguing that the crypto industry <a href=\"https:\/\/x.com\/mcagney\/status\/2110118893390074199?s=20\">handles KYC better than US banks<\/a>.<\/p>\n<p>KYC covers customer onboarding, and the Bank of America findings concern ongoing transaction monitoring, suspicious-activity reporting, and correspondent due diligence, which makes the comparison narrower than the rhetoric around it.<\/p>\n<p>Crypto's record adds context, with <a href=\"https:\/\/cryptoslate.com\/companies\/binance\/\">Binance<\/a> pleading guilty in 2023 to Bank Secrecy Act conspiracy, failure to register as a money transmitter, and sanctions violations. It <a href=\"https:\/\/cryptoslate.com\/binance-would-invest-4-3-billion-in-america-if-it-gets-a-refund-after-cz-pardon\/\">agreed to pay $4.3 billion<\/a> and accepted an independent monitor.<\/p>\n<p>A <a href=\"https:\/\/www.fincen.gov\/system\/files\/2026-08\/FinCEN-FTA-Digital-Asset-Investment-Scams.pdf\">FinCEN analysis<\/a> found that Bank Secrecy Act reports filed from September 2023 through December 2025 identified about $12.7 billion in suspected digital asset investment scam-related financial activity.<\/p>\n<h2>Where the Bank of America debate goes from here<\/h2>\n<p>One possible policy response is consistent AML enforcement across banks and crypto firms.<\/p>\n<p>Crypto firms with auditable on-chain monitoring, wallet screening, and automated controls would then argue they can meet legacy-bank standards, and the debate would turn to which systems produce better, faster financial intelligence.<\/p>\n<p>If banking groups and lawmakers read the case as proof that AML surveillance needs strengthening everywhere, both sectors face heavier compliance burdens. Exchanges, custodians <a href=\"https:\/\/cryptoslate.com\/congress-is-making-stablecoins-easier-to-use-while-bitcoin-still-waits-for-clarity\/\">and stablecoin intermediaries<\/a> could face broader Bank Secrecy Act coverage, and DeFi, wallets and stablecoin secondary markets would become the main policy battleground.<\/p>\n<p>Moynihan told the Senate that crypto firms should meet bank standards. The Oct. 13 findings turn that standard into a test for banks and crypto firms alike: enforcement of the rules as written.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In December 2023, Senator Elizabeth Warren asked Bank of America CEO Brian Moynihan whether crypto companies handling financial transactions should follow the same anti-money-laundering rules as banks. &#8220;Absolutely,&#8221; he said. On Oct. 13, Treasury announced more than $1.2 billion in penalties against his bank. FinCEN found that Bank of America admitted to willfully violating the [&hellip;]<\/p>\n","protected":false},"author":1511,"featured_media":572137,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76747,77968,60793,11],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bank of America backed crypto AML rules but reported over $5 billion in suspicious activity late<\/title>\n<meta name=\"description\" content=\"Bank of America faces $1.2 billion in penalties after admitting willful AML violations, renewing scrutiny of the compliance standards its CEO backed for crypto firms.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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