Bank of America faces record fines for anti-money laundering failures

On October 14, 2026, the United States Department of the Treasury announced a combined regulatory action against Bank of America, the nation's second-largest bank, for significant lapses in anti-money laundering (AML) compliance and sanctions violations. The bank has been hit with a $1.2 billion fine related to systemic failures in monitoring and reporting risks to national security, including operations linked to Chinese money laundering networks and illegal financing. Additionally, the bank reached an $11.6 million settlement with the Office of Foreign Assets Control (OFAC) regarding violations of various sanctions programs, including those concerning Iran, Russia, narcotics trafficking, and global terrorism.

Regulators, including the Office of the Comptroller of the Currency (OCC) and the Financial Crimes Enforcement Network (FinCEN), determined that the institution failed to adequately investigate trillions of dollars in potentially suspicious transactions despite being aware of compliance deficiencies. This penalty marks the largest in the history of the OCC and the third-largest in the history of FinCEN. Bank of America has acknowledged the violations and stated that these charges will result in a $1.2 billion non-tax-deductible expense in the third quarter, reducing net earnings by approximately 17 cents per share. The bank is now expected to address these systemic oversight gaps to restore regulatory standing.