On October 13, 2026, the U.S. Treasury Department penalized Bank of America $1.2 billion for failing to report over $5 billion in suspicious transactions and violating anti-money-laundering and sanctions laws. The penalty includes a record $750 million fine from the Office of the Comptroller of the Currency and an $11.6 million sanctions settlement involving Iran and Russia. Regulators cited systemic breakdowns linked to Chinese money-laundering networks and border illicit finance.
Fines and penalties imposed
- ▪Treasury's Financial Crimes Enforcement Network stated that the $1.2 billion penalty against Bank of America represents the third-largest penalty in Treasury history
- ▪The Office of the Comptroller of the Currency assessed a $750 million civil money penalty against Bank of America, marking the largest penalty in that agency's history
- ▪Bank of America stated that the Treasury Department's regulatory penalties will result in a $1.2 billion non-tax-deductible charge in its third-quarter 2026 financial results, reducing net income by 17 cents per share
- ▪Bank of America reached an $11.6 million settlement with the Office of Foreign Assets Control regarding apparent violations of sanctions programs involving Iran, Russia, global terrorism, narcotics trafficking, and Somalia
- ▪On October 13, 2026, the U.S. Treasury Department penalized Bank of America more than $1.2 billion over money laundering and sanctions violations
Anti-money laundering program failures
- ▪Regulators found Bank of America failed to fix anti-money-laundering program deficiencies, violating the Bank Secrecy Act and a December 2024 cease-and-desist order
- ▪Bank of America failed to report more than $5 billion in suspicious transactions, with over $1 billion involving high-priority national security risks
- ▪The U.S. Treasury stated Bank of America relied so heavily on external inquiries that Bank of America effectively outsourced detecting suspicious activity
- ▪U.S. regulators accused Bank of America of prioritizing revenues over compliance resources, finding that compliance staff lacked sufficient skills and training
Unaddressed financial crime risks
- ▪Bank of America's more than $5 billion in unreported financial activity included risks tied to Chinese money-laundering networks and potential trade-based money laundering along the U.S. southwest border
- ▪The U.S. Treasury Department stated Bank of America failed to address red flags involving possible narcotics-trafficking proceeds and fraud in a timely manner
Bank remediation and oversight
- ▪Bank of America will be required to conduct independent third-party reviews of undetected suspicious transactions, transaction monitoring, and customer due-diligence programs
- ▪Bank of America stated it has invested billions of dollars in compliance and that its anti-money-laundering remediation costs are already reflected in its expense base
Debatable claims
- ▪Federal prosecutors should file criminal charges against bank executives for repeated compliance failures
- ▪Billion-dollar fines effectively deter systemic anti-money-laundering violations at major financial institutions
- ▪Bank of America's compliance failures stem from prioritizing revenue over regulatory oversight
- ▪Bank of America's reporting breakdowns created severe vulnerabilities in U.S. national security
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