violations

The second-largest US bank faces record penalties for failing to comply with sanctions and money laundering laws.

The US Treasury Department has imposed more than $1.21 billion in penalties against Bank of America, the second-largest bank in the US, for violating anti-money laundering and sanctions laws.

The fines announced on Tuesday include the third-largest penalty in the department’s history, the US Treasury said in a statement.

“When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls, exposing the entire US financial system to significant illicit finance risks,” US Treasury Secretary Scott Bessent said.

He added that these “actions send a clear message that even the biggest financial institutions are not above the law”.

Enforcement actions

According to the Treasury Department, the Financial Crimes Enforcement Network (FinCEN) assessed a $1.2 billion penalty over the bank’s failure to mitigate and report “priority national security risks, including Chinese Money Laundering Networks and illicit finance along the southwest border”.

The failures identified by FinCEN involved deficiencies related to the bank’s suspicious transaction identification and reporting and customer due diligence processes. According to the statement, “the Bank effectively outsourced to third parties a substantial portion of its proactive detection and reporting obligations”.

“Bank of America failed to timely report to FinCEN over $5 billion dollars in suspicious transactions”, the Treasury said in the statement.

The Office of the Comptroller of the Currency (OCC) assessed a $750 million fine, the largest in its history, for the bank’s deficient and ineffective anti-money laundering compliance programme. FinCEN’s $1.2 billion penalty includes credit for the OCC fine.

The Office of Foreign Assets Control (OFAC) also announced an $11.6 million settlement agreement over apparent violations of numerous sanctions programmes, including on Iran, Russia, narcotics and global terrorism.

Bank of America agreed to settle 475 apparent violations of multiple sanctions programmes, and the settlement includes “significant compliance commitments regarding training, testing and audit, and future communication and cooperation with OFAC”.

In the statement, the Treasury said the actions “underscore the importance of effectively complying” with US anti-money laundering and sanctions requirements.

In response, Bank of America said in a statement: “Financial crime compliance is serious, and we are responsible for getting it right.”

“We have invested billions of dollars in technology and dedicated thousands of employees to combat financial crime, and our team is far along with and committed to completing the work required to address the issues raised by our regulators.”

At least six people killed in drone attack on passenger van and one person killed in strike on residential apartment.

At least seven Palestinians have been killed and more than 10 wounded in Israeli attacks on the Gaza Strip as Israel continues to violate a nearly year-old “ceasefire”.

Six of the victims were killed in an Israeli drone attack on a passenger van in Tal al-Hawa, in southwest Gaza City, on Wednesday, according to witnesses and medical sources.

The Palestine Red Crescent Society, a humanitarian group that runs ambulance and emergency services, said its crews took 13 wounded people to al-Quds Hospital.

Medical sources told Al Jazeera the injuries sustained by the victims of the attack are “critical”.

“Doctors say it’s difficult to save the lives of the wounded because the health system is decimated by years of Israeli attacks and the blockade,” said Al Jazeera’s Hind Khoudary, reporting from Gaza City. “The number of dead in the strike could rise in the coming hours.”

Earlier, the official Palestinian Wafa news agency reported that an Israeli attack on a residential apartment near al-Shifa Hospital in Gaza City killed at least one woman.

Elsewhere, four Palestinians, including two children, were wounded when an Israeli drone hit a shelter for displaced people in southern Gaza, according to local sources cited by Wafa.

Two other Palestinians were seriously wounded by Israeli forces southeast of Deir el-Balah in central Gaza, while Israeli tank fire was also reported in southern Khan Younis, in the southern part of the Strip.

The attacks came as the Ministry of Health in Gaza, which compiles casualty figures from hospitals across the territory, said in its latest daily update early on Wednesday that the bodies of at least nine people had arrived at hospitals during the last 24 hours.

While eight people were killed around the reporting period, one woman had died from earlier wounds, bringing the number of people killed since the start of the “ceasefire” between Israel and the Palestinian group Hamas in October last year to at least 1,431.

At least 5,026 have been wounded over the same period, including 31 in the past 24 hours, the ministry said.

“There is supposed to be a ceasefire in Gaza, but the Israeli army’s violence is endless. Every day, Palestinians are killed, injured, and the humanitarian situation is deteriorating,” said Khoudary, describing “terrifying” conditions for Gaza’s residents.

“Everyone inside the Strip is afraid to go to the supermarket, to take their children to school, and to live their everyday lives,” she added.

Overall, Israel’s genocidal war against Palestinians in Gaza has killed at least 74,032 people since October 2023, with another 175,142 wounded, according to health officials.

In August, an analysis by the United Nations Satellite Centre found that the number of destroyed structures across Gaza has increased by 9 percent since the “ceasefire” took effect.

Overall, about 82 percent of structures in Gaza, roughly 200,000 buildings, have been damaged, and about two-thirds of those have been destroyed since the start of the war, according to the UN.