SEC fines Merrill Lynch $7.5 million over suspicious activity report failures
The Bank of America unit failed to file numerous suspicious activity reports between April 2020 and September 2024, highlighting anti-money-laundering control weaknesses amid tougher regulatory scrutiny on financial institutions.
The U.S. Securities and Exchange Commission fined Bank of America's Merrill Lynch unit $7.5 million for failing to file numerous suspicious activity reports between April 2020 and September 2024. The enforcement action highlights weaknesses in anti-money-laundering monitoring and reporting systems that are meant to alert regulators and law enforcement to potentially illicit or unusual transactions. The source also frames the penalty as part of tougher regulatory scrutiny on financial institutions, which could complicate efforts by some firms to expand into crypto-related services.
- suspicious activity reports: Regulatory filings used by financial institutions to flag potentially illicit or unusual transactions.
- anti-money laundering: Rules and compliance controls designed to detect and prevent illicit financial activity.
- SEC: The U.S. Securities and Exchange Commission, the country's securities regulator.