US Fines Bank of America $1.2 Billion, Alleging AML and Sanctions Violations

Bank of America has been hit with a massive $1.21 billion fine for failing to maintain proper Anti-Money Laundering (AML) and sanctions oversight. While this might look like a banking-only problem, it has direct consequences for any retailer or operator that partners with large banks for their consumer financing programs. When major lenders face historic fines, they often tighten their risk models and increase documentation requirements for their merchant partners to prove compliance. For your business, this means you should expect stricter 'Know Your Customer' (KYC) protocols when onboarding or renewing financing programs. Lenders are under immense pressure from the Treasury Department to prove they aren't facilitating illegal financial activity. This pressure trickles down to the merchant level. You may see more rigorous audits of how you collect customer data or more frequent updates to the digital platforms you use to process credit applications. If you use a white-label Bank of America credit product, keep a close eye on service level changes as the bank redirects resources toward regulatory remediation. Now is a good time to ensure your store’s internal compliance records are organized and that your staff is following financing application procedures to the letter.

Source: PYMNTS

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