Bank of America fined $1.2 billion by Treasury Department for anti-money laundering and sanctions law violations
Bank of America Fined $1.2 Billion Over Compliance Failures
Healfromzero.com – Bank of America fined 1 2 billion is the focus of a Treasury Department enforcement action over alleged failures involving anti-money-laundering controls and US sanctions rules. The penalty of more than $1.2 billion ranks among the largest financial-crime punishments imposed on a major American bank.
Treasury said the nation’s second-largest bank did not adequately identify, address, or report illicit-finance risks. Officials cited concerns involving Chinese money-laundering networks and financial activity linked to the US southwest border.
“When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls, exposing the entire U.S. financial system to significant illicit finance risks,” Treasury Secretary Scott Bessent said.
Bessent said the case demonstrates that large financial institutions remain subject to the same legal standards and compliance obligations as other organizations.
Record OCC Penalty Is Part of the Settlement
Of the total payment, $750 million will go to the Office of the Comptroller of the Currency as a civil penalty. Treasury described that amount as the largest penalty in the OCC’s history.
As part of the settlement, Bank of America acknowledged that it deliberately failed to maintain sufficient safeguards and did not properly submit suspicious-activity reports. Federal officials said the bank did not respond effectively to warning signs involving questionable customers, including people connected to narcotics trafficking, despite internal compliance escalations.
Authorities said the shortcomings had significant consequences. Bank of America processed more than $9 trillion in transactions during the prior year, while more than $5 billion in suspicious activity allegedly went unreported.
Anti-money-laundering requirements require banks to monitor customer activity, investigate unusual transactions, and alert federal authorities when conduct appears suspicious. These reports help authorities detect fraud, drug trafficking, terrorism financing, sanctions evasion, and other illicit activity.
Sanctions-Screening Flaw Raised Further Concerns
The Bank of America fined 1 2 billion settlement also addressed a design issue in the lender’s sanctions-screening system. Treasury said the flaw affected how the bank prioritized certain potential matches involving people subject to US sanctions.
When a transaction matched both the name and date of birth of a person on a Treasury sanctions list, the bank’s system did not classify it as a high-priority alert. That could delay review of payments involving parties with whom US persons or businesses may be restricted or prohibited from dealing.
Treasury’s sanctions lists include thousands of people and organizations, including suspected terrorists, narcotics traffickers, and sanctioned companies. Banks use screening tools to help stop prohibited payments from moving through the US financial system.
How the Fine Compares With Other Cases
The $1.2 billion punishment is FinCEN’s third-largest penalty to date. It follows the agency’s record $3.4 billion fine against Binance in 2023 and a $1.3 billion penalty imposed on TD Bank in 2024.
Those earlier cases also involved Justice Department charges. No related Justice Department action has been announced in connection with the Bank of America settlement.
The Bank of America fined 1 2 billion case is also the largest anti-money-laundering penalty levied by the Trump administration’s Treasury Department against a major bank. Critics, including Better Markets chief executive Dennis Kelleher, argued that the penalty was modest when compared with the bank’s revenue.
FAQ: What the Bank of America Fine Means for US Customers
Does the settlement mean customers’ accounts are at risk?
The announced enforcement action concerns the bank’s compliance systems and reporting practices. Treasury’s statement did not say that ordinary customer deposits or accounts were affected by the settlement.
What is a suspicious-activity report?
A suspicious-activity report is a filing banks make to US authorities when transactions or customer activity may indicate money laundering, fraud, sanctions violations, or other potential financial crimes. The filing itself does not establish that a customer committed wrongdoing.
Why do sanctions-screening alerts matter?
Sanctions screening helps financial institutions identify payments that may involve restricted people, companies, or jurisdictions. Prompt review is important because US law can require banks to block assets or stop certain transactions.