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- calendar_today October 14, 2026
U.S. Treasury Imposes $1.2 Billion Fine on Bank of America
The U.S. Treasury Department has announced a $1.2 billion fine against Bank of America, citing failures in anti money laundering measures and alleged violations of U.S. sanctions programs. The action represents the third-largest penalty ever issued by the department.
Details of the Compliance Violations
Treasury officials stated that Bank of America, the nation’s second-largest bank, was found to have violated both anti money laundering requirements and sanctions laws designed to prevent illicit finance activity. According to a statement from Treasury Secretary Scott Bessent, when a financial institution of this scale fails to meet its obligations, it exposes the entire U.S. financial system to significant illicit finance risks.
Settlement with Office of Foreign Assets Control
In addition to the primary fine, Bank of America reached an $11.6 million settlement with the Treasury's Office of Foreign Assets Control. The settlement pertains to apparent violations tied to sanctions programs against Iran, Russia, narcotics networks, and global terrorism organizations. Treasury’s statement indicated that these violations were considered serious, given their breadth and the risks they posed to national security.
Breakdown of the Penalty and Regulatory Actions
The overall $1.2 billion penalty includes a $750 million fine assigned to the Office of the Comptroller of the Currency (OCC), the largest ever imposed by that federal bank regulatory agency. Treasury’s Financial Crimes Enforcement Network, known as FinCEN, cited Bank of America for failures to mitigate and report risks, specifically involving Chinese money laundering networks and illicit finance along the southwest border.
Bank of America has admitted to willfully violating the 1970 Bank Secrecy Act, which requires banks to assist the government in its efforts to detect and prevent money laundering.
Bank of America Response to the Fine
In response to the Treasury’s actions, Bank of America stated: "Financial crime compliance is serious, and we are responsible for getting it right. We worked with regulators to reach these penalty resolutions stemming from violations cited in the previously reported 2024 (Comptroller of the Currency) Consent Order and FinCEN’s investigation."
The bank added that it has invested billions of dollars in technology and has dedicated thousands of employees to combat financial crime, emphasizing its commitment to address the issues raised by its regulators.
Recent Context of U.S. Bank Penalties
This $1.2 billion penalty follows other significant fines in recent years. In 2023, Binance, the world’s largest cryptocurrency exchange, reached a roughly $4 billion settlement with U.S. authorities. In another case, Canada-based TD Bank settled in 2024 for approximately $3 billion. Both cases were part of the Biden administration’s heightened enforcement of anti money laundering laws, particularly within the rapidly evolving virtual currency industry.
The Treasury’s action against Bank of America underscores its ongoing efforts to ensure financial institutions adhere to laws addressing illicit finance risks and us sanctions violations.
Source: kivitv.com.
