BofA pays $16.6m to settle sanctions allegations

Bank Of America Building

Bank of America's banking unit agreed to pay $16.6m to resolve allegations that it processed transactions for drug traffickers who are subject to U.S. sanctions, the U.S. Treasury Department said on Thursday.

Reuters reports that the bank processed around $91,000 in transactions for six designated narcotics traffickers between 2005 and 2009, and failed to file timely reports on accounts owned by four others, the department's Office of Foreign Assets Control (OFAC) said.

Bank of America spokesman Lawrence Grayson said the settlement concluded a matter the bank addressed in 2009 by improving its sanctions-related systems and controls.

In announcing the settlement, OFAC said it determined that 79 transactions the bank processed after October 2006 constituted an 'egregious' case, because the bank knew of a problem with its screening tool, but didn't fix it until more than two years later.

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Bank of America to pay $16.6 mln to resolve U.S. sanctions violations

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