The Treasury Department announced a $1.21 billion penalty against Bank of America for willful anti-money laundering and sanctions violations. The violations included failing to report over $5 billion dollars in suspicious transactions.
$1 billion of those transactions reportedly had national security implications. The Office of the Comptroller of the Currency issued a $750 million civil money penalty. The bank also reached a $11.6 million settlement with the Treasury's Office of Foreign Assets Control.
Treasury Secretary Scott Bessent said the consequences extend far beyond the bank's own walls. He said they expose the entire U.S. financial system to significant illicit finance risks.
According to the Treasury, the bank was aware in March 2022 that its payment directory included sanctioned banks.
As part of the settlement, the bank must conduct a third-party lookback to find previously undetected suspicious transactions. The bank must submit to independent reviews of its anti-money laundering governance, with particular attention to risks related to sanctioned jurisdictions.