The US Treasury Department announced on Tuesday that it is imposing fines totaling $1.2 billion on Bank of America due to alleged violations of anti-money laundering and sanctions regulations.
This penalty is the third-largest ever levied by the Treasury against a financial institution.
Treasury Secretary Scott Bessent commented, saying, “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. Today’s actions send a clear message that even the biggest financial institutions are not above the law.”
Additionally, Bank of America reached an agreement for an $11.6 million settlement related to various sanctions programs, including those concerning Iran, Russia, narcotics, and global terrorism.
The Financial Crimes Enforcement Network issued the $1.2 billion penalty because of Bank of America’s inability to address and report key national security risks, particularly related to Chinese money laundering networks and illicit financial activities along the southwest border.
This penalty entails $750 million directed to the U.S. Office of the Comptroller of the Currency, which marks the largest fine ever imposed by that federal bank regulatory agency.
According to the Treasury, Bank of America “admits that it willfully violated” the Bank Secrecy Act, established in 1970, which mandates that banks assist the government in detecting and preventing money laundering.
In response, Bank of America stated, “Financial crime compliance is serious, and we are responsible for getting it right. We worked with regulators to reach these penalty resolutions stemming from violations cited in the previously reported 2024 Consent Order and FinCEN’s investigation. We have invested billions of dollars in technology and have dedicated thousands of employees to combat financial crime, and our team is committed to addressing the issues raised by our regulators.”
This latest penalty ranks as the third-largest ever imposed by the Treasury, following a roughly $4 billion settlement with Binance, the largest cryptocurrency exchange, in 2023, and an approximately $3 billion settlement with Canada-based TD Bank the following year.
Both of these significant actions came during the Biden administration’s focus on anti-money laundering enforcement and compliance with the rapidly evolving virtual currency sector.
Months later, Binance’s founder Changpeng Zhao faced a four-month prison sentence for ignoring the misuse of his platform for transactions linked to child sex abuse, drug trafficking, and terrorism.
