Bank of America: Treasury Department punishes lax money laundering controls with billions in fines

Bank of America has been fined $1.2 billion in the US for anti-money laundering failures and other violations. The Ministry of Finance ‌said this was the third highest fine it had ever imposed.

The major bank failed to report suspicious activity worth more than $5 billion. These include those that pose risks to national security, it said.

The second-largest US bank after JPMorgan Chase gave priority to its own earnings when creating compliance programs. “When a bank of this size fails to meet its anti-money laundering and sanctions compliance obligations, the consequences reach far beyond its own walls,” said Treasury Secretary Scott Bessent.

The fine also includes a payment of $11.6 million after a settlement for violating sanctions against Iran and Russia, among others, as the ministry announced. According to a court document, the bank will allow external auditors to analyze suspicious transactions.