Bank of America, the second largest bank in the United States, has been fined over $1.21 billion for violating anti-money laundering laws and disregarding international economic sanctions.
According to the U.S. Department of the Treasury, $1.2 billion represents the penalty for breaching anti-money laundering laws, of which $750 million is a record fine imposed by the U.S. banking oversight authority (OCC). Another $11.6 million is related to violations of international sanctions, as reported by Reuters.
"Today's actions send a clear message that not even the largest financial institutions are above the law," said Treasury Secretary Scott Bessent in a statement.
Unreported Suspicious Transactions of Billions of Dollars
According to the Treasury Department, Bank of America admitted to deliberately violating the Bank Secrecy Act and failing to maintain an anti-money laundering program that meets the minimum requirements under U.S. law.
The bank also acknowledged that it did not timely report mandatory suspicious transaction reports, totaling over $5 billion.
Among these, transactions exceeding one billion dollars were associated with risks to national security and other priority forms of illicit financing.
American authorities have identified suspicious operations indicating the involvement of Chinese money laundering networks, fraud, and possible money laundering schemes through trade, with significant links in the U.S. southwest border area.
These transactions should have been reported to FinCEN, the Treasury Department agency responsible for combating financial crimes.
Violations of Sanctions against Russia, Iran, and Belarus
Bank of America has also reached an agreement with the Office of Foreign Assets Control (OFAC) to settle potential civil liability in the case of 475 alleged violations of U.S. sanctions.
According to authorities, the bank processed payments of millions of dollars that would have violated restrictions imposed on Russia, Belarus, Iran, Myanmar, and Somalia, as well as sanctions related to drug trafficking and international terrorism.
"When a bank of this size fails to meet its anti-money laundering obligations and comply with sanctions, the consequences go far beyond the institution itself, exposing the entire American financial system to significant risks of illicit financing," warned Scott Bessent.
Bank of America has over 70 million customers and processes approximately $4.5 trillion in payments annually for individuals. For corporate clients, the value of managed payments reaches $450,000 trillion per year, including salaries and payments to suppliers.