The U.S. Treasury Department has imposed a $1.2 billion penalty on Bank of America. Federal regulators found that the bank did not report billions in suspicious transactions. The settlement is one of the largest financial enforcement actions in the history of the U.S. Treasury.
The Financial Crimes Enforcement Network (FinCEN), an agency of the Treasury, announced the penalty. It is the third-largest in FinCEN’s history, trailing only penalties against Binance in 2023 and TD Bank in 2024.
Treasury Secretary Scott Bessent emphasized the risks posed by these failures, saying, “Financial institutions are on the front lines of protecting our economic and national security.” He stressed that a bank’s failure to meet anti-money laundering obligations endangers the entire U.S. financial system.
Bank of America failed to report over $5 billion in suspicious transactions. FinCEN noted potential links to Chinese money-laundering networks and illicit finance along the U.S.-Mexico border.
The bank was found to have willfully violated the Bank Secrecy Act. This federal law mandates that financial institutions guard against money laundering and report suspicious activities.
As part of a broader enforcement effort, the Treasury Department also announced an $11.6 million settlement with the Office of Foreign Assets Control related to sanctions violations involving Iran and Russia.
The Office of the Comptroller of the Currency imposed a $750 million penalty. However, this amount is credited against the $1.2 billion FinCEN penalty, not added to it.
Comparison of Penalties
This $1.2 billion penalty is significant among anti-money laundering cases, yet smaller than some broader settlements for financial misconduct.
- Bank of America (2014): The bank agreed to a $16.65 billion settlement for mortgage-backed securities before the 2008 financial crisis.
- JPMorgan Chase (2013): A $13 billion settlement over misleading investors about mortgage-backed securities.
- BNP Paribas (2014): Paid $8.9 billion for transactions involving sanctioned countries.
- Deutsche Bank (2017): Settled for $7.2 billion for misleading investors regarding mortgage-backed securities.
- Citigroup (2014): The bank paid $7 billion for its conduct related to mortgage securities.
Bank of America’s penalty ranks high in FinCEN’s enforcement actions, surpassed only by Binance and TD Bank.
Ongoing Oversight and Measures
Bank of America acknowledges its compliance failures. It has invested in technology and personnel to enhance anti-money laundering controls.
The bank remains under regulatory oversight to address identified deficiencies. New corrective measures include an independent assessment of its financial crime controls.
Some issues persisted despite a previous order from December 2024. The Office of the Comptroller of the Currency noted training deficiencies, reporting delays, and detection system weaknesses.
The case illustrates the gravity of penalties for non-compliance and raises questions about whether such fines deter misconduct at large banks.