Bank of America Fined $1.2 Billion Over Major Anti-Money Laundering Failures

The US Treasury Department has imposed a record-breaking $1.2 billion fine on Bank of America, the nation's second-largest lender, for systemic failures in its anti-money laundering (AML) protocols. The penalty, which marks the third-largest ever issued by the Treasury, follows an investigation by the Financial Crimes Enforcement Network (FinCEN) into the bank's inability to mitigate and report critical national security risks, including illicit finance networks and border-related criminal activities.

Treasury Secretary Scott Bessent emphasized that the bank's negligence exposed the entire US financial system to significant risks, stating, "Today's actions send a clear message that even the biggest financial institutions are not above the law." The bank failed to report over $5 billion in suspicious transactions in a timely manner, with more than $1 billion of that amount directly linked to national security threats. Additionally, the Office of the Comptroller of the Currency issued a $750 million penalty, the largest in its history, while the bank reached an $11.6 million settlement for sanctions violations involving Russia, Iran, and narcotics trafficking.

Bank of America has formally admitted to willfully violating the 1970 Bank Secrecy Act. In a statement, the institution acknowledged its responsibility, noting that it has already invested billions of dollars into enhanced compliance technology and personnel. The bank stated it is working closely with regulators to resolve the issues identified in a 2024 consent order, emphasizing its commitment to rectifying these systemic shortcomings and strengthening its financial crime detection infrastructure.

This enforcement action aligns with broader federal efforts to tighten oversight of financial institutions and cryptocurrency platforms, following massive settlements with entities like Binance and TD Bank in recent years. By holding major financial players accountable for failing to prevent money laundering, the US government aims to curb the flow of illicit funds tied to global terrorism and organized crime. The resolution underscores a tightening regulatory environment where even the largest banks face severe financial and reputational consequences for compliance lapses.