The United States has imposed more than $1.2 billion in penalties on Bank of America for violating anti-money laundering and sanctions laws, following regulatory findings that the financial institution failed to report billions of dollars in suspicious transactions.
The US Treasury Department announced the action on October 13, 2026, saying the bank failed to identify, investigate and report more than $5 billion in suspicious financial activity. Some transactions raised national security concerns, including possible links to Chinese money laundering networks and illicit financial activities along the southwestern US border.
The Financial Crimes Enforcement Network (FinCEN) assessed a $1.2 billion penalty against the bank. Meanwhile, the Office of the Comptroller of the Currency (OCC) imposed a $750 million civil penalty for serious deficiencies in its anti-money laundering compliance programme. The OCC described the fine as the largest in its history.
Additionally, the Treasury Department’s Office of Foreign Assets Control announced an $11.6 million settlement over 475 apparent violations of sanctions programmes involving Iran, Russia, narcotics and international terrorism.
US Treasury Secretary Scott Bessent said the enforcement action demonstrated that major financial institutions must comply with laws designed to protect the country’s financial system and national security.
Regulators also ordered Bank of America to review its transaction-monitoring systems, improve customer due diligence and identify suspicious transactions that previously went unreported.
The bank had already faced a cease-and-desist order in December 2024 requiring improvements to its anti-money laundering controls. However, regulators said significant weaknesses remained despite that directive.
In response, a Bank of America spokesperson said the institution had invested billions of dollars in technology and employed thousands of workers to combat financial crime. The bank also pledged to complete the corrective measures required by regulators.
The penalty comes as the bank prepares to report its third-quarter earnings. Bank of America said the charge would reduce its quarterly net income by approximately 17 cents per share.
The enforcement action highlights growing regulatory scrutiny of financial institutions and the importance of effective safeguards against money laundering and sanctions violations.
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