Bank of America faces $1.2bn in US compliance penalties
The US Treasury says the bank breached anti-money-laundering and sanctions obligations.
Bank of America is facing $1.2bn in US penalties over alleged failures in its anti-money-laundering and sanctions controls. The Treasury Department said the action was the third-largest fine in its history.
The Treasury said the penalties relate to alleged violations of rules designed to prevent banks being used for illicit finance. It also said Bank of America had reached a separate $11.6m settlement with the Office of Foreign Assets Control over apparent sanctions violations involving programmes covering Iran, Russia, narcotics and global terrorism.
The figures were reported by the Associated Press after a Treasury announcement on Tuesday. The report did not identify individual customers, transactions or criminal cases linked to the bank, and it did not say that Bank of America itself had been accused of laundering money.
The latest action comes against a background of earlier regulatory scrutiny. In December 2024, the Office of the Comptroller of the Currency said Bank of America had failed to file some suspicious activity reports promptly and had deficiencies in customer due diligence, internal controls, governance, testing and training. That order required the bank to strengthen its compliance systems and appoint an independent consultant.
Those earlier findings provide context but do not, by themselves, establish that every issue cited in the new penalties is identical. The current public reporting available at the deadline gives the total penalties and broad legal basis, but not a full breakdown of the conduct covered by the Treasury action.
For banks, anti-money-laundering controls are intended to identify transactions that may warrant reporting to authorities. Sanctions controls are intended to prevent prohibited dealings with restricted countries, organisations or individuals. Failures in either system can create legal, financial and reputational risks beyond the institution involved.
The case is relevant to British financial firms because large banks operate across jurisdictions and must manage overlapping reporting and sanctions regimes. However, Tuesday's announcement was a US enforcement action and did not announce any change to UK rules.
The Treasury portrayed the penalties as a warning that the largest banks remain subject to enforcement. The public reporting reviewed for this article included no detailed response from Bank of America, so the bank's position and any intended appeal or remediation beyond earlier measures remain unclear.
One story, several perspectives
What is established
- The US Treasury announced $1.2bn in penalties against Bank of America.
- A separate $11.6m sanctions settlement was announced by OFAC.
- The public reporting reviewed does not provide a complete breakdown of the alleged transactions.
Left
Arguments Large banks should face substantial penalties when weak controls allow suspicious activity to pass through the financial system.
Values Accountability, protection from illicit finance and equal treatment under the law.
Consequences Under-enforcement could leave taxpayers and communities carrying the wider costs of financial crime.
Centre
Arguments Strong enforcement is necessary, but penalties should be matched by clear findings, independent remediation and transparent supervision.
Values Due process, institutional competence and confidence in the financial system.
Consequences Poorly explained enforcement can weaken trust while excessive compliance burdens can reduce legitimate access to banking.
Right
Arguments Banks must obey sanctions and reporting rules, but regulators should avoid vague obligations and excessive penalties that can be passed on through higher costs.
Values Clear rules, proportionality and private-sector responsibility.
Consequences Over-regulation could discourage banking activity, while weak sanctions would reduce the deterrent effect.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Priya Shah — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The central penalty figures and Treasury attribution are supported by AP's same-day report. The regulatory background is supported by the OCC's public enforcement notice, while uncertain details have been explicitly qualified.
- confirmed The US Treasury announced $1.2bn in penalties against Bank of America on 13 October 2026. — Reported by AP from the Treasury announcement. source
- confirmed The penalties concern alleged anti-money-laundering and sanctions violations. — Stated in the AP report. source
- confirmed A separate $11.6m OFAC settlement covered apparent sanctions violations. — Stated in the AP report. source
- confirmed The OCC previously cited delayed suspicious activity reports and customer due-diligence deficiencies. — Stated in the OCC's December 2024 enforcement notice. source
- confirmed The open reporting does not identify the individual transactions or criminal cases involved. — The AP report gives the broad legal basis and totals but does not identify such cases. source
Editor's note
The current penalties are reported by AP from a Treasury announcement. The open sources reviewed did not provide the full enforcement documents or a detailed Bank of America response, so the specific transactions and remedial timetable remain unclear.Sources
- US hits Bank of America with $1.2 billion fine, saying it violated money laundering, sanctions laws — Associated Press
- OCC Issues Cease and Desist Order Against Bank of America for BSA Deficiencies — Office of the Comptroller of the Currency
More on this in other media
- The Guardian — „bank of america”
- BBC News — „bank of america”
- Sky News — „bank of america”