Episode Details

Merrill Lynch, part of Bank of America, faces a $7.5 million SEC penalty for failing to report suspicious transactions—many of which internal reviews flagged as risky—due to outdated risk-scoring software inherited from its parent company. The flawed system only triggered investigations for scores of 20 or higher, missing hundreds of millions in transactions that should’ve raised alarms. Merrill neither admitted nor denied wrongdoing but agreed to pay, while Bank of America pledged to improve its anti-money laundering systems and brought in a consultant to review the entire program. This isn’t the first compliance stumble for Bank of America, which also received a cease-and-desist order last year for similar failures—highlighting how even giants can slip up under complex regulatory demands.

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