Bank of America has been hit with approximately $1.21 billion in penalties by the U.S. Treasury Department for longstanding failures in anti-money laundering compliance and violations of U.S. sanctions laws [1][2]. This enforcement action includes a $1.2 billion penalty assessed by the Financial Crimes Enforcement Network (FinCEN), which incorporates a $750 million civil penalty imposed by the Office of the Comptroller of the Currency (OCC)—the largest fine ever levied by the OCC and the third-largest in Treasury history [1][2]. Additionally, a separate $11.6 million settlement was reached with the Office of Foreign Assets Control (OFAC), bringing the total penalties to approximately $1.21 billion [1].
Regulators found that Bank of America failed to adequately investigate trillions of dollars in potentially suspicious transactions, despite being aware of significant compliance deficiencies for years [1]. The bank admitted to willfully violating the Bank Secrecy Act by not maintaining an adequate anti-money laundering program, failing to conduct required due diligence on certain foreign bank accounts, and not filing mandatory Suspicious Activity Reports [1][2]. Specifically, Bank of America did not timely report over $5 billion in suspicious transactions, with more than $1 billion involving national security risks such as Chinese money laundering networks, fraud, and potential trade-based money laundering connected to the southwest border [1][2].
The OCC identified significant deficiencies in 2023 and issued a cease-and-desist order in December 2024, requiring the bank to strengthen its anti-money laundering program. However, regulators found that widespread breakdowns in internal controls persisted, allowing potential trade-based money laundering transactions to go undetected [1]. The OFAC settlement involved 475 apparent violations of U.S. sanctions programs targeting countries including Iran, Russia, Belarus, Burma, and Somalia, as well as narcotics trafficking and global terrorism [1][2]. Violations included processing payments through sanctioned banks and failing to promptly update federal sanctions watchlists [1][2].
Treasury Secretary Scott Bessent emphasized that the penalties send a clear message that even the largest financial institutions are not above the law [2]. In response, Bank of America stated it has invested billions of dollars in technology and dedicated thousands of employees to combat financial crime, and is committed to completing the work required to address regulatory concerns [2]. The bank also pledged ongoing support for law enforcement and continued reporting of suspicious activity [2].
CONCLUSION
Bank of America faces historic penalties totaling $1.21 billion for willful violations of anti-money laundering and sanctions laws, marking one of the largest enforcement actions in U.S. banking history. Regulators cited persistent compliance failures and significant risks to national security. The bank has committed to addressing these issues and strengthening its compliance programs.