Bank of America hit with $1.2bn fine for money laundering failings

The U.S. Treasury Department has imposed penalties totaling over $1.21 billion on Bank of America for significant failures in its anti-money laundering (AML) and sanctions compliance programs. The Financial Crimes Enforcement Network (FinCEN) assessed a $1.2 billion penalty, which includes a record $750 million civil penalty from the Office of the Comptroller of the Currency (OCC). Additionally, the Office of Foreign Assets Control (OFAC) reached an $11.6 million settlement for various sanctions violations. This enforcement action marks the third-largest penalty in Treasury history.

Authorities cited Bank of America for failing to report more than $5 billion in suspicious transactions in a timely manner, with over $1 billion of that activity linked to potential national security risks. These unreported transactions included those associated with Chinese money laundering networks and illicit finance along the U.S. southwest border.

Bank of America admitted to willfully violating the Bank Secrecy Act and failing to establish and maintain an adequate AML program, despite being under a December 2024 cease-and-desist order to address prior compliance deficiencies. The bank has indicated it is working with regulators, investing in technology, and dedicating resources to address the identified issues.