Bank of America has been hit with more than $1.2 billion in federal penalties after regulators determined the bank failed for years to flag over $5 billion in suspicious transactions.
More than $1 billion of the unreported activity involved national security and other high-priority risks, including Chinese money-laundering networks and activity tied to the southwest border.
Settlement Details
As part of the settlement, the bank admitted to willfully violating the Bank Secrecy Act by failing to maintain a compliant anti-money laundering program, properly vet foreign correspondent accounts, and file suspicious activity reports.
The Treasury Department's Financial Crimes Enforcement Network (FinCEN) said the penalty is the third-largest in the department's history. The total includes a $750 million civil money penalty from the Office of the Comptroller of the Currency (OCC), which is the largest penalty the agency has ever imposed.
Compliance Failures
The OCC noted that the bank failed to address deficiencies identified under a cease-and-desist order signed in 2024. According to Treasury officials, the bank "prioritized its revenues" and relied heavily on tips from law enforcement and other banks, effectively outsourcing part of its responsibility for identifying suspicious activity.
Jonathan Gould, Comptroller of the Currency, stated that "the bank's poor response to its BSA deficiencies is unacceptable."
Additional Consequences
Treasury also announced a separate $11.6 million settlement with the bank over sanctions violations. Bank of America said the penalties will result in a $1.2 billion non-tax-deductible charge in its third-quarter results, reducing net income by approximately 17 cents per share.
The bank is also required to hire a third party to conduct a lookback review for suspicious transactions it previously missed.
