The U.S. Treasury Department has imposed a $1.2 billion penalty on Bank of America over violations of anti-money laundering laws and sanctions regulations, marking the third-largest penalty in the department’s history.
Treasury Secretary Scott Bessent said the action sends a clear message that even the largest financial institutions must comply with federal law and maintain effective safeguards against illicit financial activity.
“When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls,” Bessent said, warning that such failures expose the U.S. financial system to significant risks.
According to the Treasury Department, its Financial Crimes Enforcement Network (FinCEN) assessed the $1.2 billion penalty over the bank’s failure to adequately address and report national security risks, including Chinese money laundering networks and illicit financial activity along the U.S. southwest border.
The penalty includes $750 million payable to the Office of the Comptroller of the Currency (OCC), representing the largest fine ever imposed by that federal banking regulator.
The Treasury Department also announced an $11.6 million settlement with Bank of America’s Office of Foreign Assets Control (OFAC) concerning apparent violations of multiple sanctions programs involving Iran, Russia, narcotics and global terrorism.
Authorities said the bank admitted that it willfully violated the Bank Secrecy Act of 1970, which requires financial institutions to help detect and prevent money laundering.
Bank of America Responds
In a statement, Bank of America said it had worked with regulators to resolve the penalties, which stem from violations identified in a previously reported 2024 consent order issued by the OCC and a FinCEN investigation.
The bank said it has invested billions of dollars in technology and dedicated thousands of employees to combating financial crime. It added that work to address regulators’ concerns was well underway and that it remained committed to completing the required improvements.
One of the Largest Financial Penalties in U.S. History
The $1.2 billion penalty ranks behind two major settlements: an approximately $4 billion agreement with cryptocurrency exchange Binance in 2023 and an approximately $3 billion settlement with Canada-based TD Bank in 2024.
Both cases involved major enforcement actions targeting failures in anti-money laundering controls.
The Bank of America case highlights the continuing scrutiny of major financial institutions and the growing regulatory emphasis on preventing illicit transactions, enforcing international sanctions and protecting the U.S. financial system.
