The major U.S. bank admits it intentionally violated certain rules by failing to report suspicious transactions worth more than $5 billion on time, the Treasury Department announced.
The fine, equivalent to just over 11.9 billion kronor (about $1.1 billion), is the third-largest of its kind in history. It was announced less than a day before the bank was due to report its quarterly results on Wednesday.
The Treasury Department also announced a separate settlement with the bank of $11.6 million over sanctions violations.
"Today's actions send a clear message that even the largest financial institutions are not above the law," Treasury Secretary Scott Bessent said in a press release.
