Bearish
Bank of America fined $1.2 billion for anti-money laundering violations
The U.S. Treasury Department has imposed a $1.2 billion penalty on Bank of America for failing to report suspicious transactions and deficiencies in its anti-money-laundering (AML) program. This fine includes a $750 million civil penalty from the Office of the Comptroller of the Currency (OCC), marking the largest in the agency's history. Despite previous regulatory orders to improve its AML compliance, significant issues remain. Bank of America has stated it is investing heavily in fraud prevention technology and personnel to address these concerns.
Key points
- Bank of America admits to willfully violating federal AML laws, including failing to maintain adequate safeguards and report suspicious transactions.
- The OCC imposes a $750 million civil penalty, the largest in its history, for deficiencies in Bank of America's AML compliance program.
- Bank of America reports that it will record the $1.2 billion, non-tax-deductible penalty in its upcoming Q3 earnings report.
- The bank has invested billions in fraud prevention technology and personnel to address AML compliance issues.
Sources
- Bank of America hit with $1.2 billion penalty over money laundering allegationsAxios · October 13, 2026
- US hits Bank of America with $1.2 billion fine, saying it violated money laundering, sanctions lawsAssociated Press · October 13, 2026
- OCC Imposes $750 Million Assessment Against Bank of America for Deficient BSA/AML ComplianceOffice of the Comptroller of the Currency · October 13, 2026
AI-generated from public news sources. Not financial advice.
