Bank of America Faces $1.21 Billion in US Penalties

On 13 October 2026, US authorities announced penalties exceeding 1.21 billion against Bank of America for anti-money laundering and sanctions violations. Regulators said the bank failed to report more than 5 billion in suspicious transactions to the Financial Crimes Enforcement Network (FinCEN), including over $1 billion linked to national security and other priority risks.

Regulatory actions and penalties

FinCEN assessed a 1.2 billion penalty for failures to mitigate and report priority financial risks, including activity linked to Chinese Money Laundering Networks and illicit finance along the US southwest border. The Office of the Comptroller of the Currency (OCC) imposed a 750 million civil money penalty for deficiencies in the bank’s Bank Secrecy Act (BSA) and anti-money laundering compliance programme. It was the largest civil penalty in OCC history.

The Treasury Department’s Office of Foreign Assets Control (OFAC) reached an $11.6 million settlement over more than 400 apparent sanctions violations. The transactions involved sanctions programmes concerning Iran, Russia, narcotics and global terrorism.

Bank Secrecy Act and suspicious activity reporting

The BSA is a US law that requires financial institutions to maintain records and assist authorities in detecting and preventing money laundering. Banks use transaction-monitoring systems to identify potentially suspicious activity and file Suspicious Activity Reports (SARs) with FinCEN. SARs provide information to law enforcement and are not, by themselves, proof of criminal conduct.

Regulators found that Bank of America’s monitoring system was deficient and delayed SAR filings. The bank admitted that it wilfully violated the BSA by failing to maintain an adequate anti-money laundering programme, conduct due diligence on foreign financial institutions and file required reports. Regulators also said the bank relied heavily on external information instead of carrying out sufficient proactive detection.

Compliance requirements and follow-up

The bank’s deficiencies continued after a December 2024 cease-and-desist order requiring improvements to its BSA and anti-money laundering programme. Under a FinCEN consent order, an independent third party must review transactions dating back to January 2022 and report previously undetected suspicious activity to federal authorities.

Bank of America said the penalties would create a $1.2 billion non-tax-deductible charge against third-quarter earnings, reducing net income by about 17 cents per share.

Important Facts for Exams

• FinCEN is a bureau of the US Department of the Treasury that collects and analyses financial intelligence.
• The Bank Secrecy Act was enacted in 1970 and forms a central part of the US anti-money laundering framework.
• The OCC supervises and regulates national banks and federal savings associations in the United States.
• OFAC administers and enforces US economic and trade sanctions.

Suspicious Activity Reports are confidential filings made by financial institutions to FinCEN. The BSA and sanctions rules impose separate compliance obligations on banks.