Bank of America Fine Tops $1.21 Billion Over Anti-Money Laundering Failures

The U.S. Department of the Treasury announced on October 13, 2026, sanctions totaling more than $1.21 billion against Bank of America, which it describes as the country’s second-largest bank, for violations of anti-money laundering and sanctions laws. The Bank of America fine package includes the third-largest penalty in Treasury history and the largest in the history of the Office of the Comptroller of the Currency (OCC).

Why it matters: The case concerns how a major bank monitors and reports suspicious money movements, affecting people who use accounts, cards, and transfers. Official documents do not announce changes for customers.

Breakdown of the Bank of America Fines

• FinCEN: $1.2 billion for failing to mitigate or report top national security risks, including Chinese money laundering networks and illicit finance along the U.S. southwest border.
• OCC: $750 million for a deficient and ineffective BSA/AML compliance program. FinCEN credits this payment against its fine, so the Treasury is entitled to $450 million under its order.
• OFAC: $11.6 million ($11,662,930) to settle 475 alleged violations of sanctions programs involving Iran, Russia, narcotics, and global terrorism, among others, that occurred between September 18, 2021, and April 24, 2025.

What Authorities Found

Bank of America admits to willfully violating the Bank Secrecy Act and failing to report more than $5 billion in suspicious transactions to FinCEN in a timely manner. More than $1 billion of that amount involved top risks, including activity typical of Chinese money laundering networks, fraud, and possible trade-based money laundering with a substantial connection to the U.S. southwest border.

Among the patterns cited were repeated, high-volume credit card purchases that did not match customers’ profiles and large transfers to China with generic descriptions such as «for goods.»

Since December 2024, the bank has been under an OCC cease-and-desist order requiring it to correct its program. More than a year later, it still failed to report potentially suspicious activity to investigators.

FinCEN’s order requires the bank to review past transactions with a third party to report activity that was not detected and to undergo an independent review focused on the U.S. southwest border, cartels, and narcotics, as well as Iran and Russia.

Treasury Secretary Scott Bessent stated: «Today’s actions send a clear message that even the largest financial institutions are not above the law.»

What the Bank of America Fine Means if You’re a Customer

Treasury, FinCEN, and OFAC documents do not announce changes for customers. Separately, the FDIC insures deposits for at least $250,000 per depositor, per ownership category, at each insured bank. Since 1933, no depositor has lost a single cent of FDIC-insured funds.

• Review your account statements: confirm that you recognize every transaction and report any that you don’t recognize to the bank.
• Don’t lend your account or cards: don’t use them to move other people’s money.
• Be wary of payments from strangers: be cautious of anyone who asks you to receive or forward money.

Source: Treasury statement, FinCEN order, OFAC statement, and FDIC. Data consulted on October 13, 2026.