US fines Bank of America $1.2bn for money laundering, sanctions violations | Banks News
Bank of America Faces Over $1.21 Billion in Penalties for Sanctions Violations
Published on October 14, 2026
The U.S. Treasury Department has levied penalties exceeding $1.21 billion against Bank of America, the second-largest bank in the United States, for violations of anti-money laundering and sanctions laws. The fines, announced Tuesday, represent the third-largest penalty in the department’s history.
U.S. Treasury Secretary Scott Bessent emphasized the broader ramifications of the bank’s failures, stating that noncompliance by a financial institution of this magnitude poses significant risks to the integrity of the entire U.S. financial system. “When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls,” Bessent said. He further noted that these actions serve as a reminder that “even the biggest financial institutions are not above the law.”
The Financial Crimes Enforcement Network (FinCEN) imposed a substantial $1.2 billion penalty, citing the bank’s failure to address and report on “priority national security risks,” including Chinese Money Laundering Networks and illicit financial activities along the U.S.-Mexico border. According to FinCEN, the bank exhibited shortcomings in its suspicious transaction identification and reporting processes, as well as in customer due diligence. The statement indicated that Bank of America had effectively outsourced significant portions of its detection and reporting obligations.
In addition, the Treasury reported that Bank of America failed to timely report over $5 billion in suspicious transactions to FinCEN.
The Office of the Comptroller of the Currency (OCC) also imposed a historic $750 million fine, marking the largest penalty in its history, due to the bank’s inadequate anti-money laundering compliance program. The $1.2 billion penalty from FinCEN includes credit for the OCC fine.
Moreover, the Office of Foreign Assets Control (OFAC) announced an $11.6 million settlement concerning apparent violations of multiple sanctions programs, including those targeting Iran, Russia, narcotics, and global terrorism. Bank of America has agreed to settle 475 apparent violations of these sanctions and committed to enhancing its compliance measures, which will involve improved training, auditing, and ongoing communication with OFAC.
The Treasury highlighted that the recent actions underscore the critical need for effective compliance with U.S. anti-money laundering and sanctions laws.
In a response, Bank of America stated, “Financial crime compliance is serious, and we are responsible for getting it right.” The bank noted its substantial investments in technology and dedicated personnel to combat financial crime, assuring the public that it is committed to addressing the issues raised by regulators.
