Bank of America to Pay About $1.21 Billion for Anti-Money Laundering and Sanctions Violations

The Treasury Department disclosed that Bank of America will pay approximately $1.21 billion in federal penalties for anti-money-laundering deficiencies and violations of U.S. sanctions. The settlement includes a $1.2 billion fine from the Financial Crimes Enforcement Network, which incorporates a $750 million civil penalty from the Office of the Comptroller of the Currency, and an $11.6 million agreement with the Office of Foreign Assets Control.

Regulators said the bank failed to file timely suspicious-activity reports for more than $5 billion in transactions, including over $1 billion linked to national-security concerns such as Chinese money-laundering networks and potential trade-based schemes near the southwest border. The bank admitted to willfully violating the Bank Secrecy Act by not maintaining an adequate anti-money-laundering program, neglecting due-diligence on certain foreign accounts, and failing to file required reports.

The Comptroller of the Currency identified significant compliance gaps in 2023 and issued a cease-and-desist order in December 2024, but the Treasury found that internal controls continued to break down, allowing trade-based money-laundering transactions to go undetected. Jonathan V. Gould, the Comptroller, criticized the bank for not correcting the deficiencies despite repeated warnings.

The OFAC component of the settlement covers 475 alleged sanctions violations involving countries such as Iran, Russia, Belarus, Burma and Somalia, as well as narcotics trafficking and terrorism financing. The bank will work with an independent third party to review previously undetected suspicious transactions and will implement additional compliance measures, including employee training, testing, audits and ongoing cooperation with regulators.

A Bank of America spokesperson did not immediately respond to requests for comment.