The department flagged transactions linked to suspected Chinese money-laundering networks and illicit financial activity along US-Mexico border, citing national security concerns.
The US Treasury Department has imposed more than $1.2 billion in penalties on Bank of America over alleged violations of anti-money laundering and sanctions laws, accusing the second-largest US bank of failing to properly report more than $5 billion in suspicious transactions.
Announcing the action on Tuesday, the department said some transactions raised national security concerns, including those linked to suspected Chinese money-laundering networks and illicit financial activity along the US-Mexico border.
The penalties include a $750 million civil fine imposed by the Office of the Comptroller of the Currency (OCC), a key US banking regulator. The Treasury’s Financial Crimes Enforcement Network also assessed penalties as part of the broader enforcement action.
‘Not Above The Law’
Separately, the Treasury’s Office of Foreign Assets Control announced an $11.6 million settlement over apparent violations of sanctions programmes involving Iran, Russia, narcotics and global terrorism.
“Today’s actions send a clear message that even the biggest financial institutions are not above the law,” US Treasury Secretary Scott Bessent said.
He added that failures to meet anti-money laundering and sanctions obligations could expose the wider US financial system to significant risks from illicit finance.
Bank Faces Fresh Compliance Scrutiny
The action comes despite a December 2024 cease-and-desist order requiring Bank of America to address weaknesses in its anti-money laundering programme and comply with the Bank Secrecy Act.
The Treasury said the bank had “failed to prioritise” compliance despite agreeing to the earlier order.
Under the latest regulatory requirements, the bank must work with a third party to identify and report suspicious transactions that went undetected. It will also face an independent review of its transaction-monitoring and due-diligence programmes.
OCC Comptroller Jonathan Gould described the bank’s conduct as “egregious and continued” violations of the Bank Secrecy Act, saying the $750 million penalty was the largest civil money penalty the regulator had imposed on a bank.
