Bank of America Fined $1.2 Billion for AML and Sanctions Violations

The U.S. Treasury Department has imposed a $1.2 billion penalty on Bank of America for systemic failures in anti-money laundering (AML) and sanctions compliance. This enforcement action represents the third-largest fine in the department’s history, signaling a heightened regulatory focus on institutional oversight.

Regulators identified significant lapses in the bank’s ability to mitigate and report priority national security risks. Specifically, the institution failed to adequately monitor and address illicit finance networks, including those linked to Chinese money-laundering operations.

These compliance failures are categorized as a threat to the integrity of the U.S. financial system. The scale of the penalty underscores a shift toward stricter enforcement against major financial institutions that fail to maintain robust internal controls regarding international sanctions and illicit capital flows.