Bank of America fine: US Treasury imposes USD 1.2 billion over AML and sanctions failures

The US Treasury Department said it was imposing USD 1.2 billion in fines on Bank of America. Treasury said the bank allegedly broke anti-money laundering and sanctions laws. The action ranks as the department’s third-largest penalty. Treasury said the case raised wider risks for the US financial system.

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Treasury Secretary Scott Bessent said the impact went beyond one institution. "When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls, exposing the entire US financial system to significant illicit finance risks,\" Bessent said. \"Todays actions send a clear message that even the biggest financial institutions are not above the law.\"

Bank of America fines include USD 750 million OCC penalty

Treasury said the USD 1.2 billion figure included USD 750 million for the US Office of the Comptroller of the Currency. Treasury described it as the biggest fine that agency has ever issued. Treasury also said Bank of America admitted it willfully violated the 1970 Bank Secrecy Act.

Treasury said its Financial Crimes Enforcement Network assessed the USD 1.2 billion penalty. Treasury said the bank failed to reduce and report priority national security risks. Treasury listed Chinese Money Laundering Networks and illicit finance along the southwest border. Treasury said these gaps affected reporting and mitigation duties.

Bank of America sanctions settlement covers Iran and Russia

Treasury said Bank of America reached an USD 11.6 million settlement with the Office of Foreign Assets Control. Treasury said the settlement addressed apparent breaches across several sanctions programmes. The listed areas included Iran, Russia, narcotics, and global terrorism. Treasury said the sanctions issues were separate from the larger penalty.

Bank of America fine ranks behind Binance and TD Bank penalties

Treasury said the case was its third-largest penalty on record. Treasury said a roughly USD 4 billion settlement in 2023 with Binance ranked higher. Treasury also cited an approximately USD 3 billion settlement with Canada-based TD Bank the following year. Treasury said both actions reflected Biden administration enforcement priorities.

Treasury linked those earlier cases to anti-money laundering compliance and virtual currency oversight. Treasury said Binance was the world’s largest cryptocurrency exchange. Months later, Binance founder and CEO Changpeng Zhao, was sentenced to four months in prison. AP said the charges involved ignoring criminal use tied to child sex abuse, drugs, and terrorism.

Treasury said the Bank of America action combined penalties for anti-money laundering and sanctions concerns. Treasury said the fines included record money for the US Office of the Comptroller of the Currency. Treasury also said the bank settled a separate Office of Foreign Assets Control matter. The department said the enforcement showed large banks faced the same legal duties.

With inputs from PTI