Bank of America hit with $1.2 billion penalty over money laundering allegations

Axios · 10/13/2026, 9:03:58 PM

The Treasury Department on Tuesday announced more than $1.2 billion in penalties against Bank of America for years of failures to report suspicious transactions and address shortcomings in its anti-money-laundering program. Why it matters: The action includes the third-largest penalty in Treasury history. What they're saying: "Today's actions send a clear message that even the biggest financial institutions are not above the law," Treasury Secretary Scott Bessent said in a press release . The big picture: The civil action comes less than a week after federal regulators fined American Express $350 million over similar failures to detect and report suspected money laundering. Zoom in: Bank of America admitted to willfully violating federal anti-money-laundering laws — including requirements to maintain adequate safeguards and report suspicious transactions. Regulators said the bank failed to properly monitor trillions of dollars in transactions, resulting in more than $5 billion in suspicious activity that was either unreported or reported late. More than $1 billion involved potential national security and other high-priority risks — including Chinese money-laundering networks and suspected trade-based money laundering linked to the U.S.-Mexico border, regulators said. Of note: The Office of the Comptroller of the Currency also assessed a $750 million civil penalty, the largest in the agency's history. Treasury also announced an $11.6 million settlement with Bank of America over hundreds of apparent violations of U.S. sanctions, including those targeting Russia and Iran. Flashback: Bank of America has been working to address deficiencies in its anti-money-laundering program since a December 2024 regulatory order. But regulators said significant problems persisted. Officials said the bank prioritized revenue while limiting compliance resources — at times relying on law enforcement and other outside sources to identify suspicious activity. The other side: In a statement