SEC Fines Merrill Lynch $7.5M for AML Compliance Failures

The U.S. Securities and Exchange Commission (SEC) has fined Merrill Lynch, the brokerage arm of Bank of America (BAC), $7.5 million for deficiencies in its anti-money laundering (AML) monitoring system.

Details of the Action

According to the SEC, Merrill Lynch used a software program from Bank of America to monitor and report suspicious activity, but the program fell short for years. The exact nature and duration of the deficiencies were not specified.

Company's Response

Bank of America and Merrill Lynch have not yet commented on the fine. The company is expected to pay the penalty without admitting or denying the findings.

Precedents and Context

This fine is part of a broader regulatory crackdown on banks' AML compliance. The SEC has imposed similar penalties on other financial institutions in recent years.

Potential Financial Impact

The $7.5 million fine is relatively small compared to Bank of America's revenue, which exceeded $100 billion in 2025. It is unlikely to have a material impact on the bank's financial performance.