U.S. Fines Bank of America .2 Billion for Money Laundering Violations

U.S. Fines Bank of America $1.2 Billion for Money Laundering Violations

Treasury imposes $1.2B penalty on Bank of America for violating anti-money laundering laws, marking third-largest in history.

Editorial Desk

October 14, 2026 One Min Read

POLICY WIRE — Washington, D.C. — The U.S. Treasury Department has announced a $1.2 billion fine against Bank of America for alleged violations of anti-money laundering and sanctions laws, marking the third-largest penalty ever imposed by the department.

The enforcement action comes as part of ongoing efforts to strengthen financial crime compliance across major institutions. Treasury Secretary Scott Bessent emphasized that the penalties are necessary to protect the U.S. financial system from illicit finance risks, particularly related to Chinese money laundering networks and border-related criminal activities.

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In addition to the $1.2 billion penalty, Bank of America also settled with the Office of Foreign Assets Control for $11.6 million over apparent violations of sanctions programs targeting Iran, Russia, narcotics, and global terrorism. The bank admitted to willfully violating the 1970 Bank Secrecy Act and stated it has invested heavily in combating financial crime through technology and personnel.

Reporting by Policy-Wire (PW)

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