Original Coverage & Source Attribution: turnto10.com
WASHINGTON (TNND) — The U.S. Treasury Department said it is imposing $1.2 billion in fines on Bank of America for allegedly violating anti-money laundering and sanctions laws.
Treasury Secretary Scott Bessent announced the penalties on Tuesday, describing them as the department’s third-largest enforcement action against a financial institution. The action includes an $11.6 million settlement with the Treasury’s Office of Foreign Assets Control over apparent violations of sanctions programs involving Iran, Russia, narcotics trafficking, and global terrorism.
The penalty also includes $750 million that will go to the U.S. Office of the Comptroller of the Currency, the largest fine ever imposed by that federal bank regulatory agency.
Bessent said the penalties reflect alleged shortcomings in Bank of America’s obligations to identify suspicious activity and comply with restrictions designed to prevent illicit money from flowing through the U.S. financial system.
“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 U.S. financial system to significant illicit finance risks,” Treasury Secretary Scott Bessent said in a statement.
“Today’s actions send a clear message that even the biggest financial institutions are not above the law,” he added.
Treasury Secretary Scott Bessent attends a meeting with President Donald Trump of the multinational political and security coalition “Shield of the Americas” on the sidelines the United Nations General Assembly, Tuesday, Sept. 22, 2026, at the UN headquarters. (AP Photo/Julia Demaree Nikhinson)
Anti-money laundering rules require financial institutions to maintain safeguards that can identify and report transactions potentially tied to crimes such as fraud, drug trafficking and terrorism financing. U.S. sanctions rules restrict dealings involving targeted countries, organizations and individuals.
The enforcement action comes as federal regulators continue to scrutinize major banks’ compliance systems. Treasury has imposed multibillion-dollar penalties against financial institutions in previous cases involving alleged failures to detect or prevent illicit financial activity.
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EDITOR’S NOTE: The Associated Press contributed to this report.
