The Treasury Department on Tuesday announced a sweeping enforcement action against Bank of America, imposing more than $1.2 billion in penalties for systemic failures in its anti-money laundering and sanctions compliance programs. The fine, one of the largest of its kind, underscores the heightened scrutiny facing major financial institutions as the U.S. seeks to counter illicit finance networks tied to national security threats.
The Financial Crimes Enforcement Network (FinCEN), Treasury’s lead agency for combating money laundering, levied a $1.2 billion penalty against the bank—the second-largest in the country—for failing to “mitigate and report priority national security risks.” According to Treasury, those risks include Chinese money laundering operations and “illicit finance along the southwest border.”
The overall penalty package includes a $750 million fine from the Office of the Comptroller of the Currency (OCC), which cited Bank of America’s “ineffective” AML compliance program. Separately, Treasury’s Office of Foreign Assets Control (OFAC) reached an $11.6 million settlement with the bank for apparent violations of multiple sanctions regimes, including those targeting Iran, Russia, narcotics trafficking, and global terrorism.
Treasury officials noted that the $1.2 billion penalty is the third-largest in the department’s history, while the OCC’s $750 million fine is the largest ever imposed by that bureau. The action sends a clear signal that even the largest financial institutions are not immune from accountability, said Treasury Secretary Scott Bessent.
“Financial institutions are on the front lines of protecting our economic and national security,” Bessent said in a statement. “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. Today’s actions send a clear message that even the biggest financial institutions are not above the law.”
FinCEN’s investigation found that Bank of America failed to timely report more than $5 billion in suspicious transactions. Roughly $1 billion of those transactions posed national security and illicit finance risks, including ties to Chinese money laundering networks and potential money laundering with a “substantial nexus” to the southwest border. According to Treasury, the bank “prioritized its revenues” and “effectively outsourced” a large portion of its proactive detection and reporting duties to third parties.
The OCC’s parallel probe found that Bank of America’s “deficient” transaction monitoring system resulted in the bank failing to properly monitor “trillions of dollars” in transactions. Comptroller of the Currency Jonathan Gould called the violations “unacceptable” and “egregious,” adding: “Every year, [Bank of America] processes hundreds of trillions of dollars in transactions across the globe. It has a high, and increasing, risk profile for money laundering, terrorist financing and other illicit activities.”
As part of its resolution with FinCEN, Bank of America admitted to violating anti-money laundering laws and agreed to work with a third party to identify and report suspicious transactions it previously missed. The bank did not immediately respond to a request for comment from The Hill.
The penalty comes amid broader concerns over the integrity of the U.S. financial system. The case highlights the challenges regulators face in policing global money flows, particularly as illicit networks exploit gaps in compliance. It also follows other recent enforcement actions, such as sanctions push tensions and strategic retreat concerns, reflecting a turbulent landscape for U.S. policy.
Bank of America reported $31.6 billion in net revenue in the second quarter, up from $30.3 billion in the first quarter—a 15.3 percent increase. The bank is scheduled to release its third-quarter earnings on Wednesday morning.
