US fines Bank of America US$1.2bil for anti-money laundering violations

The US Treasury Department has imposed penalties of over US$1.2 billion on Bank of America for violations of anti-money laundering and sanctions laws. The bank failed to properly report more than US$5 billion in suspicious transactions, including those with potential national security risks and ties to Chinese money laundering networks.

This penalty includes a US$750 million civil penalty from the Office of the Comptroller of the Currency and a US$11.6 million settlement from the Office of Foreign Assets Control for sanctions program violations, such as those involving Iran, Russia, narcotics, and global terrorism. Treasury Secretary Scott Bessent stated that the move sends a message that even major financial institutions are not exempt from the law, as the bank's failure to meet anti-money laundering and sanctions obligations could pose significant risks to the US financial system.

Bank of America is required to work with a third party to address undetected suspicious transactions, undergo an independent review of its monitoring programs, and comply with the Bank Secrecy Act, with violations continuing as of December 2024.