A financial institution named East Overshoe was found guilty of failing to meet basic BSA record-keeping, reporting, and AML requirements. What type of fines may be imposed?

• A. A warning with no penalties
• B. Mandatory civil litigation
• C. Imprisonment of executives only
• D. Fines of up to $500,000 per violation

Answer: (D)

Fines for BSA violations are civil penalties assessed for each violation of recordkeeping, reporting, or AML requirements. When a financial institution is found noncompliant, regulators can impose significant penalties, and in this context the maximum cited is up to $500,000 for each violation. This per-violation approach reflects the civil enforcement framework used to deter noncompliance and can apply to multiple distinct failures or instances. Imprisonment is not the typical remedy for these civil AML failures, and a simple warning or mandatory civil litigation isn’t the standard outcome in this scenario.