Bank of America Fined $1.2 Billion for Anti-Money Laundering and Sanctions Violations

The U.S. Treasury Department announced Tuesday it is imposing $1.2 billion in fines on Bank of America for allegedly violating anti-money laundering and sanctions laws. The penalties represent the third-largest sum ever levied by the department.

Treasury Secretary Scott Bessent stated that when a bank of Bank of America's size fails to meet its anti-money laundering and sanctions obligations, the ramifications extend beyond its own operations, exposing the entire U.S. financial system to significant illicit finance risks. He emphasized that the action sends a clear message that even the largest financial institutions are subject to the law.

Bank of America also reached an $11.6 million settlement with the department’s Office of Foreign Assets Control for apparent violations of numerous sanctions programs, including those related to Iran, Russia, narcotics, and global terrorism. The Financial Crimes Enforcement Network (FinCEN) assessed the $1.2 billion penalty for the bank's failure to mitigate and report priority national security risks, such as Chinese Money Laundering Networks and illicit finance along the southwest border.

The penalty includes $750 million designated for the U.S. Office of the Comptroller of the Currency, marking the largest fine ever imposed by that federal bank regulatory agency. Bank of America has admitted to willfully violating the 1970 Bank Secrecy Act, which mandates that banks assist the government in detecting and preventing money laundering.

In a statement, Bank of America acknowledged the seriousness of financial crime compliance and its responsibility to uphold these standards. The bank stated that it worked with regulators to resolve the penalty issues, which stem from violations cited in a previously reported 2024 Consent Order from the Comptroller of the Currency and FinCEN's investigation. The bank also noted its significant investments, totaling billions of dollars, in technology and dedicated employees to combat financial crime, and its commitment to completing the necessary work to address the regulators' concerns.

This recent action follows other substantial penalties issued by the Treasury Department. In 2023, the department reached a settlement of approximately $4 billion with Binance, the world's largest cryptocurrency exchange. The year prior, Canada-based TD Bank agreed to an approximately $3 billion settlement. Both of these historic penalties were part of the Biden administration's broader focus on anti-money laundering efforts and promoting compliance within the emerging virtual currency industry.