Treasury fines Bank of America $1.2 billion for alleged money laundering, sanction law violations

The Treasury Department said Tuesday it is fining Bank of America $1.2 billion for allegedly violating anti-money laundering and sanctions laws.

The department accused the bank of failing to report and mitigate notable national security risks, including Chinese Money Laundering Networks and suspected "illicit finance along the southwest border." 

It also failed to report more than $5 billion in suspicious activity to the Financial Crimes Enforcement Network.

The fines, which were placed on America's second-biggest bank, mark the third-largest penalty in Treasury's history.

“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,” Treasury Secretary Scott Bessent said in a statement. “Today’s actions send a clear message that even the biggest financial institutions are not above the law.”

The department said Bank of America also reached an $11.6 million settlement with its Office of Foreign Assets Control over “apparent violations of numerous sanctions programs, including on Iran, Russia, narcotics, and global terrorism.”

The $1.2 billion penalty includes $750 million that will go to the U.S. Office of the Comptroller of the Currency, which is the largest fine ever imposed by that agency.

The fine comes after Bank of America allegedly admitted that it "willfully violated’’ the 1970 Bank Secrecy Act, which requires banks to help the government detect and prevent money laundering.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.