Bank of America Faces $1.2 Billion Penalties Over Violations

Bank of America received more than $1.2 billion in federal penalties on Tuesday, Oct. 13, 2026, after US regulators said the bank failed for years to report billions of dollars in suspicious transactions and address anti-money laundering problems.

The Treasury Department said the bank failed to report more than $5 billion in transactions it considered "suspicious" and admitted violating Bank Secrecy Act requirements. More than $1 billion involved national security and high-priority risks, according to Treasury.

Treasury's Financial Crimes Enforcement Network assessed a $1.2 billion penalty, which the agency said was the third-largest in its history. The Office of the Comptroller of the Currency separately imposed a record $750 million civil money penalty.

Bank of America admitted failing to maintain a compliant anti-money laundering program, conduct required due diligence on foreign correspondent accounts and file reports after failing to "timely report" certain transactions, according to Treasury.

"Today's actions send a clear message that even the biggest financial institutions are not above the law," said Scott Bessent, Treasury Secretary.

Treasury said the enforcement action was coordinated with the Office of the Comptroller of the Currency. The agency said the bank relied heavily on law-enforcement inquiries and referrals from other institutions to identify suspicious activity.

Bank of America said it has invested billions of dollars in compliance efforts and is "far along" in remediation work, according to a statement provided to CNBC.

"Financial crime compliance is serious, and we are responsible for getting it right," said Christa Robinson, Bank of America spokesperson.

The bank said the penalties will create a $1.2 billion non-tax-deductible charge in its third-quarter results, reducing net income by about 17 cents per share. It said remediation costs are already reflected in its expense base.

Treasury said Bank of America "prioritized its revenues" while minimizing the effect on compliance resources. The bank's stock fell about 2% in after-hours trading following the announcement.