OCC Imposes $750 Million Assessment Against Bank of America for Deficient BSA/AML Compliance

The Office of the Comptroller of the Currency (OCC) announced a $750 million civil money penalty against Bank of America, N.A. for violations of the Bank Secrecy Act and its implementing regulations. This amount is the largest in OCC history. That's not a rounding error. That's a statement.

The bank is also subject to a December 2024 cease-and-desist order, which requires the bank to address its deficient Bank Secrecy Act/anti-money laundering (BSA/AML) compliance program. The OCC found that the bank's BSA/AML compliance program has been deficient and ineffective. I read the record penalty as the regulator saying the bank's failures are not just technical, but systemic.

The OCC found that the bank's deficient transaction monitoring system resulted in the bank failing to properly monitor trillions of dollars in transactions. This caused the bank to file large numbers of late suspicious activity reports (SARs) involving billions of dollars. Many of the late SARs had indicia of money laundering.

The bank knew for years that it was failing to escalate potentially suspicious activities to investigators for review to determine if a SAR should be filed but failed to correct this serious BSA violation. After agreeing to the 2024 Order, the bank still failed to prioritize BSA/AML compliance. More than a year after the 2024 Order, the bank still failed to escalate potentially suspicious activities to investigators for review.

Additionally, the bank processed potential trade-based money laundering transactions due to a systemic gap in its transaction monitoring program. The bank's BSA Officer and staff lacked sufficient skills and expertise to effectively manage the bank's BSA/AML program. Key BSA personnel did not receive appropriate training regarding suspicious activity identification, investigation, and reporting, which resulted in the bank filing inaccurate and late SARs.

Comptroller of the Currency Jonathan V. Gould said the bank's BSA/AML compliance program continues to reflect widespread breakdowns in internal controls, which threatens U.S. national and economic security.

The OCC is taking this action in coordination with an action by the Financial Crimes Enforcement Network (FinCEN), which is assessing a $1.2 billion fine that credits the OCC's $750 million penalty. If I were a compliance officer at another large bank, I'd be checking my own transaction monitoring gaps tonight.