NEW YORK — Bank of America Corp. has agreed to pay $72.5 million to settle a proposed class-action lawsuit brought by a group of women who say the bank should have spotted signs that the late financier Jeffrey Epstein was funneling money through his accounts to facilitate sexual abuse, according to court papers filed late Thursday.
The accord, which still requires approval from U.S. District Judge Deborah Batts in Manhattan, would compensate dozens of Epstein survivors who allege that between 2013 and 2019 the bank ignored unusually large cash withdrawals, overseas wires and other activity that should have triggered money-laundering or suspicious-activity reports. “The payment represents an important measure of accountability by one of the world’s largest financial institutions,” attorneys for the plaintiffs wrote in a joint letter to the court.
Bank of America, Epstein’s primary lender after his ties with JPMorgan Chase ended, did not admit wrongdoing. In an emailed statement, a spokesperson said the agreement “resolves all outstanding civil claims related to our limited relationship with Jeffrey Epstein” and “allows the company to move forward.”
While JPMorgan earlier paid $290 million to settle related claims and Deutsche Bank paid $75 million, Thursday’s filing marks the first time Bank of America’s potential liability has been quantified. According to people familiar with the talks, the figure was reached following two months of confidential mediation and reflects both the narrow time Epstein banked with BofA and the lender’s stated cooperation with federal investigators.
Legal analysts say the deal underscores growing pressure on banks to monitor high-profile clients. “Regulators increasingly expect institutions to marry Know-Your-Customer rules with reputational risk screens, especially after high-visibility scandals,” said Karen Petrov, a former OCC enforcement lawyer now at the University of Maryland.
The settlement comes as congressional committees examine whether U.S. banks adequately reported suspicious transactions tied to Epstein and other high-net-worth clients. Lawmakers have signaled fresh bipartisan support for tougher penalties when banks fail to file timely suspicious-activity reports.
If approved, payments could reach victims within six months, people close to the negotiations said. Bank of America still faces a separate shareholder derivative suit that claims its directors breached fiduciary duties by courting Epstein’s business. A hearing on motions to dismiss that case is set for May 14.
Analysts caution the agreement may not close the book on the episode. “Each new disclosure risks rekindling scrutiny of historical compliance lapses,” said Morningstar banking strategist Dean Bradley. “For the industry, the broader question is how much more vigilant — and expensive — future monitoring will become.”