The Treasury Department imposed a $1.2 billion fine on Bank of America for years of failures in its anti-money-laundering program. The penalty is part of a broader regulatory action that includes a $750 million civil penalty from the Office of the Comptroller of the Currency and an $11.6 million settlement for sanctions violations.
Regulators said Bank of America failed to properly monitor trillions of dollars in transactions, resulting in more than $5 billion in suspicious activity that was either unreported or reported late. The bank admitted to violating the Bank Secrecy Act by not reporting suspicious transactions worth $5 billion. These failures included a failure to mitigate national security risks, including Chinese Money Laundering Networks and illicit finance along the southwest border.
🚨 BREAKING: In a massive move, Treasury Sec. Scott Bessent just slapped $1.21 BILLION in penalties on BANK OF AMERICA, which facilitated suspicious transactions involving CHINA and other nations The bank racked up 475 apparent sanctions violations involving Iran, Russia, narcotics, and terrorism! BESSENT FAFO 🔥 Bank of America reportedly ADMITTED it willfully broke federal anti-money laundering law. Treasury says the bank failed to report more than $5 BILLION in suspicious transactions. More than $1 billion of that was tied to national security risks, including Chinese money-laundering networks and cartel-linked activity along the southwest border Treasury says the bank put its revenue ahead of compliance and ignored red flags tied to possible narcotics money BESSENT: "Today's actions send a clear message that even the biggest financial institutions are not above the law." They are not being let off the hook! BESSENT JUST LAID THE HAMMER
The Treasury Department’s action involves multiple components. The Office of the Comptroller of the Currency issued a $750 million civil penalty. The Office of Foreign Assets Control reached an $11.6 million settlement with the bank over apparent violations of sanctions programs.
The bank has been working to address these issues since a 2024 regulatory order, though it faced significant ongoing problems.
Bank of America said it is working with regulators to address the shortcomings. The bank noted that the penalty will result in a non-tax-deductible charge that will impact its third-quarter earnings. The bank has been working to address these issues since a 2024 regulatory order, though it faced significant ongoing problems.
Bank of America hit with $1.21 BILLION in penalties for money laundering and sanctions violations for Iran, Russia, the Cartels, and terrorists https://t.co/rP3xgAY4qR
Treasury Secretary Scott Bessent emphasized that the bank’s failures exposed the entire U.S. financial system to significant illicit finance risks. He stated, "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." He added, "Today’s actions send a clear message that even the biggest financial institutions are not above the law."
The Treasury Department described the $1.2 billion penalty as the third-largest fine ever issued by the agency, behind only the $3.4 billion penalty against Binance in 2023 and the $1.3 billion penalty against TD Bank in 2024.
Bank of America faces one of the largest penalties in U.S. Treasury history over anti-money laundering and sanctions violations. https://t.co/yKUC45A9hh
As of the announcements, the Treasury Department fined Bank of America $1.2 billion, the Office of the Comptroller of the Currency imposed a $750 million civil penalty, and the Office of Foreign Assets Control reached an $11.6 million settlement. The bank continues to engage with regulators to address the issues identified by the Treasury Department.
