The US Treasury Department imposed more than $1.2 billion in penalties on Bank of America for violating anti-money laundering and sanctions laws.
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 US financial system to significant illicit finance risks.
The fine is the third-largest in the Treasury Department's history.
The Office of the Comptroller of the Currency levied a $750 million civil penalty against Bank of America, the largest ever imposed by that regulator.
The bank's poor response to its BSA deficiencies is unacceptable
Bank of America failed to report more than $5 billion in suspicious activity to the government. This included $1 billion involving risks related to national security and other priority illicit finance concerns.
The Treasury said Bank of America did not flag transactions that may have involved Chinese money laundering networks or trade-based laundering linked significantly to the southwest border.
The Treasury said the bank focused on revenue when building compliance programs. It relied too much on outside inquiries from law enforcement and other financial institutions rather than its own internal controls.
Bank of America said it willfully violated the 1970 Bank Secrecy Act. The law mandates that banks assist the government in detecting and preventing money laundering.
Bank of America paid an $11.6 million settlement to the Office of Foreign Assets Control. The payment addressed apparent breaches of various sanctions programs.
OFAC said the settlement with the bank concerned 475 apparent violations of sanctions programs. These included measures targeting Russia, Belarus, Iran, Burma, Somalia, narcotics, and global terrorism.
This penalty arrives just days after American Express faced a $350 million fine for similar anti-money laundering failures.
The OCC fined American Express $350 million because its compliance program missed about $13 billion in suspected money laundering activity for over ten years.
The third-largest penalty ever issued by the Treasury Department trails a roughly $4 billion settlement in 2023 with Binance. It also follows an approximately $3 billion deal with Canada-based TD Bank the next year.
Regulatory history and compliance failures
The OCC issued a cease-and-desist order against Bank of America in December 2024. The order cited shortcomings in its Bank Secrecy Act and compliance programs.
The Treasury noted that the bank failed to prioritize compliance despite agreeing to the 2024 order.
The consent order requires Bank of America to hire an independent third party to review past transactions, identify suspicious activity the bank failed to detect at the time, and report those transactions to FinCEN.
Bank of America said its third-quarter results, set for release on Wednesday, would feature a non-tax-deductible charge of $1.2 billion. This reduces quarterly net income by approximately 17 cents a share.
Bank of America shares fell 2.7% in after-hours trading, following a 1.1% drop during the regular session.
Erika Najarian, a UBS analyst, said in a note that the penalty could worsen negative investor sentiment. She noted concerns about rising expenses and whether Bank of America can keep its roughly $6 billion quarterly share buyback pace.
We have invested billions of dollars in technology and dedicated thousands of employees to combat financial crime, and our team is far along with and committed to completing the work required to address the issues raised by our regulators.
| Regulator | Penalty Amount | Details |
|---|---|---|
| US Treasury Department | More than $1.2 billion | Total penalties for AML and sanctions violations |
| Office of the Comptroller of the Currency | $750 million | Largest civil penalty ever imposed by the OCC |
| Office of Foreign Assets Control | $11.6 million | Settlement for 475 apparent sanctions violations |
Recent Major AML Penalties
Bank of America
Third-largest Treasury penalty
$1.2 billion+
- Failed to report $5 billion in suspicious activity
- Willful violation of Bank Secrecy Act
- Prioritized revenue over compliance
American Express
Recent AML penalty
$350 million
- $13 billion in undetected suspicious activity
- Compliance failures over a decade
- Similar regulatory scrutiny
- December 2024Cease-and-desist order
OCC issues order over BSA and compliance deficiencies.
- October 2026Record fine imposed
Treasury announces more than $1.2 billion in penalties.
What we know
- Bank of America admitted willful violation of the Bank Secrecy Act.
- The OCC levied a record $750 million civil penalty.
Still unclear
- The exact outcome of the independent third-party review of past transactions.
- Whether Bank of America can maintain its roughly $6 billion quarterly share buyback pace.
Bank of America is scheduled to release its third-quarter earnings results on Wednesday morning.
