> ## Content Index > Fetch the complete content index at: https://www.bushletter.com/llms.txt > Use this file to discover other available public pages before exploring further. # US bank regulator fines Bank of America a record amount - URL: https://www.bushletter.com/bank-of-america-fined-us-1-21-billion-for-money-laundering-failures/ - Published: 2026-10-14T02:00:00.000Z - Updated: 2026-10-14T01:59:59.000Z - Description: The bank admitted wilfully failing to report over US$5 billion in suspicious transactions, including activity linked to Chinese money-laundering networks. - Author: Bushletter Newsroom - Tags: Markets, Finance, US, Bank of America TLDR US regulators have hit Bank of America with more than US$1.2 billion in combined penalties after the bank admitted wilfully failing to report over US$5 billion in suspicious transactions, including activity linked to Chinese money-laundering networks. Treasury said the actions include the third-largest penalty in its history and the largest the OCC has ever imposed. ## Third-largest Treasury enforcement action on record Bank of America has been hit with more than US$1.21 billion in combined penalties after admitting it wilfully failed to maintain an adequate anti-money-laundering programme and report suspicious transactions to US authorities. Treasury said the actions include the third-largest penalty in its history and the largest ever imposed by the Office of the Comptroller of the Currency.[\[1\]](https://home.treasury.gov/news/press-releases/sb0657?ref=bushletter.com) The Financial Crimes Enforcement Network assessed a US$1.2 billion penalty for the bank's failure to mitigate and report priority national security risks.[\[2\]](https://www.fincen.gov/news/news-releases/fincen-assesses-12-billion-penalty-against-bank-america?ref=bushletter.com) The Office of the Comptroller of the Currency separately assessed a US$750 million civil money penalty for Bank Secrecy Act violations; Treasury put the combined penalties at more than US$1.21 billion.[\[3\]](https://www.occ.gov/news-issuances/news-releases/2026/nr-occ-2026-89.html?ref=bushletter.com) The Office of Foreign Assets Control announced a further US$11,662,930 settlement for apparent violations of multiple sanctions programmes.[\[4\]](https://ofac.treasury.gov/media/937231/download?inline=&ref=bushletter.com) ## What the bank admitted Bank of America admitted wilfully violating the Bank Secrecy Act by failing to implement and maintain an anti-money-laundering programme, conduct due diligence on correspondent accounts, and file Suspicious Activity Reports.[\[2\]](https://www.fincen.gov/news/news-releases/fincen-assesses-12-billion-penalty-against-bank-america?ref=bushletter.com) The bank failed to timely report over US$5 billion in suspicious transactions, with more than US$1 billion of that activity implicating national security risks including Chinese money-laundering networks, fraud and potential trade-based money laundering linked to the south-west border.[\[1\]](https://home.treasury.gov/news/press-releases/sb0657?ref=bushletter.com) Treasury Secretary Scott Bessent said financial institutions were on the front lines of protecting economic and national security. "Financial institutions are on the front lines of protecting our economic and national security. When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls, exposing the entire U.S. financial system to significant illicit finance risks," Bessent said. "Today's actions send a clear message that even the biggest financial institutions are not above the law."[\[1\]](https://home.treasury.gov/news/press-releases/sb0657?ref=bushletter.com) Comptroller of the Currency Jonathan V. Gould said the bank's compliance programme reflected widespread breakdowns in internal controls. "Bank of America, N.A., is the second largest bank in the U.S. and the sixth largest in the world. Every year, it processes hundreds of trillions of dollars in transactions across the globe," Gould said. "Despite its obligation to the American people as a national-chartered, global systemically important bank, the bank's BSA/AML compliance program continues to reflect widespread breakdowns in internal controls, which threatens U.S. national and economic security."[\[3\]](https://www.occ.gov/news-issuances/news-releases/2026/nr-occ-2026-89.html?ref=bushletter.com) ## Financial hit and market reaction Because Bank of America admitted to wilful violations of the Bank Secrecy Act, the US$1.2 billion charge it will record at its third-quarter results on Wednesday US time is non-tax-deductible. Shares fell around 2 per cent in after-hours trading following the announcement. The enforcement action landed on the same day JPMorgan Chase reported net income of US$15.3 billion, or US$5.57 a share, against analysts' average estimate of US$5.93 per share, marking JPMorgan's first quarterly earnings miss in nearly three years. Goldman Sachs, Wells Fargo and Citigroup all reported solid results. The US Consumer Price Index for September is due Wednesday morning US time, ahead of Bank of America's earnings release. KEY TAKEAWAYS 01Bank of America admitted wilfully violating the Bank Secrecy Act, making the US$1.2 billion charge non-tax-deductible. 02Over US$1 billion of unreported transactions carried national security risks, including Chinese money-laundering networks. 03The OCC's US$750 million share is the largest civil money penalty the agency has ever imposed. 04A separate US$11.6 million sanctions settlement with OFAC accompanied the main enforcement action. 05Bank of America will record the charge when it reports third-quarter results on Wednesday US time. This article contains analysis and commentary on market conditions. It does not constitute financial, investment, or professional advice. Past performance is not indicative of future results. Always consult a qualified adviser before making financial decisions. SOURCES & CITATIONS 1. [Treasury Department press release on Bank of America enforcement action](https://home.treasury.gov/news/press-releases/sb0657?ref=bushletter.com) 2. [FinCEN assesses $1.2 billion penalty against Bank of America](https://www.fincen.gov/news/news-releases/fincen-assesses-12-billion-penalty-against-bank-america?ref=bushletter.com) 3. [OCC assesses $750 million civil money penalty against Bank of America](https://www.occ.gov/news-issuances/news-releases/2026/nr-occ-2026-89.html?ref=bushletter.com) 4. [OFAC settlement with Bank of America](https://ofac.treasury.gov/media/937231/download?inline=&ref=bushletter.com) FREQUENTLY ASKED QUESTIONS What is the Bank Secrecy Act and why does it matter? The Bank Secrecy Act requires US financial institutions to maintain anti-money-laundering programmes, conduct due diligence on accounts and file Suspicious Activity Reports when they detect potential illicit finance. Wilful violations, as Bank of America admitted, carry heavier penalties and result in non-tax-deductible fines. Which regulators were involved in the Bank of America penalty? Three US government bodies acted together: the Financial Crimes Enforcement Network (FinCEN), which assessed the headline US$1.2 billion penalty; the Office of the Comptroller of the Currency (OCC), which imposed a US$750 million civil money penalty (the largest in its history); and the Office of Foreign Assets Control (OFAC), which settled separate sanctions violations for approximately US$11.7 million. Will the fine affect Bank of America's financial results? Bank of America is set to record a US$1.2 billion non-tax-deductible charge when it reports third-quarter results on Wednesday US time. The non-deductible nature of the charge means the bank cannot reduce its tax bill using the penalty expense. Important This article contains general financial information only and does not constitute financial advice. It is not a recommendation to buy, sell or hold any financial product. Investors should seek professional financial advice tailored to their personal circumstances before making investment decisions.