Bank of America fined $1.2 billion for AML and sanctions violations

On Tuesday, Oct. 13, the U.S. Treasury Department said the Financial Crimes Enforcement Network (FinCEN) assessed a $1.2 billion penalty against Bank of America for failing to mitigate and report priority national‑security risks.

The enforcement action combines a $750 million civil money penalty from the Office of the Comptroller of the Currency (OCC) — the largest ever imposed by that agency — and an $11.6 million settlement with the Office of Foreign Assets Control (OFAC) over alleged sanctions violations.

“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,” Treasury Secretary Scott Bessent said. “Today’s actions send a clear message that even the biggest financial institutions are not above the law.”

Regulators said Bank of America did not timely file suspicious‑activity reports for more than $5 billion in transactions, including over $1 billion linked to national‑security concerns such as Chinese money‑laundering networks, fraud and potential trade‑based laundering tied to the southwest border.

The penalty is the third‑largest ever issued by the Treasury, behind a roughly $4 billion settlement with cryptocurrency exchange Binance in 2023 and a $3 billion settlement with Canada‑based TD Bank the following year. It also represents the most severe civil sanction ever levied by the OCC.

As part of the settlement, Bank of America must work with an independent third party to review previously undetected suspicious transactions and implement additional compliance testing, employee training and audit requirements.