Bank of America has reached an agreement to pay $16.6m to settle the allegations that it processed several hundred transactions that are subject to US sanctions.
According to the department’s Office of Foreign Assets Control (OFAC), the bank processed approximately $91,000 in transactions for six designated narcotics traffickers between 2005 and 2009.
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In addition, the lender also failed to file timely reports on accounts owned by four other individuals.
Bank of America spokesman Lawrence Grayson was quoted by Reuters as saying that the settlement has brought to an end a matter addressed by the bank in 2009 by improving its sanctions-related systems and controls.
Announcing the penalty, the OFAC said it concluded that the bank still processed 79 transactions after October 2006, despite being aware about the problem with its screening tool.
OFAC further noted that the bank could have faced a fine more than $83m; however, it was reduced considering the bank’s efforts for implementing required measures to fix its problems.
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