Bank of America hit with $1.2 billion fine by US Treasury

The US Treasury Department on Tuesday imposed a $1.2 billion fine on Bank of America, accusing the lender of violating anti-money laundering and sanctions laws, according to CNN. The bank, the second-largest in the United States by size, failed to implement adequate safeguards to report suspicious activity.

A lack of strict controls at large financial institutions exposes the global financial system to the risk of illicit financing. When a systemic player of this magnitude fails to supervise transactions linked to drug trafficking and other criminal networks, the regulatory and economic consequences extend beyond national borders.

According to CNN, the penalty announced is the third-largest imposed by the Financial Crimes Enforcement Network (FinCEN). The agency previously levied record fines of $3.4 billion on Binance in 2023 and $1.3 billion on TD Bank in 2024. In addition, $750 million of the current penalty will go to the Office of the Comptroller of the Currency as a civil penalty.

The financial institution said the measure will affect its third-quarter results with a charge that is not tax-deductible, reducing net income by approximately 17 cents per share. Despite having processed more than $9 trillion in transactions in 2025, the bank acknowledged operational failures in the early detection of alerts.