Shock of a 1.2 Billion Dollar Fine to Bank of America

The United States' second largest bank, Bank of America, was subjected to sanctions totaling more than $1.21 billion due to violations of its anti‑money‑laundering obligations and international sanctions rules. In a decision announced by the U.S. Treasury on October 13, the Treasury said the bank had serious deficiencies in detecting and reporting suspicious financial transactions. The penalty became the Treasury's third highest sanction on record.

No Suspicious Transaction Over $5 Billion Reported

The Financial Crimes Enforcement Network (FinCEN) under the Treasury said the bank failed to report a suspicious transaction exceeding $5 billion in a timely manner. According to the statement, more than $1 billion of those transactions posed priority risks to national security. The examined activities included findings pointing to money‑laundering through China‑linked networks, fraud, and potential commercial transactions linked to the U.S. southwest border.

Additional $750 Million Penalty on the Bank

The Office of the Comptroller of the Currency (OCC) imposed an additional $750 million fine on Bank of America, citing its anti‑money‑laundering program as inadequate and ineffective. The amount became the OCC's largest penalty on record. The agency said the bank could not properly monitor trillions of dollars in financial activity due to shortcomings in its transaction‑monitoring systems, and that suspicious‑activity reports covering billions of dollars were delayed.

Violations Related to Iran, Russia, and Terrorism

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) reached a separate settlement with the bank for $11.6 million over potential violations identified under sanctions programs related to Iran, Russia, drug trafficking, and global terrorism. Officials said the sanctions‑covered transactions included hundreds of possible violations.

Scott Bessent: Big Banks Must Also Follow the Law

Treasury Secretary Scott Bessent said financial institutions bear a significant responsibility for safeguarding the economy and national security. Bessent emphasized that, regardless of size, no financial institution is exempt from anti‑money‑laundering and sanctions obligations.

Bank of America Promises to Address Shortcomings

Bank of America announced it is investing billions of dollars in technology and related processes to strengthen anti‑financial‑crime and compliance systems. The bank said it is determined to eliminate the deficiencies identified by regulators and to bolster its compliance programs.

Under the decision, the bank must also work with an independent third party to identify previously overlooked suspicious transactions and reassess its customer review processes using transaction‑monitoring systems.