$5 Billion in Suspicious Transactions: $1.21 Billion Fines Imposed on Bank of America

US regulatory authorities have imposed total fines exceeding $1.21 billion on "Bank of America," the second-largest bank in the United States, due to years-long failures in anti-money laundering systems and compliance with US sanctions, after discovering deficiencies in monitoring billions of dollars in transactions and delays in reporting suspicious operations worth more than $5 billion.

"Fox Business" network reported that the penalties will result in the bank recording a non-tax-deductible cost of approximately $1.2 billion in its third-quarter financial results, reducing net income by about 17 cents per share. The measures include a $1.2 billion fine imposed by the Financial Crimes Enforcement Network (FinCEN), which includes a $750 million civil penalty imposed by the Office of the Comptroller of the Currency (OCC), in addition to a separate settlement of $11.6 million with the Office of Foreign Assets Control (OFAC).
Record fines reveal flaws in financial oversight
The measures included some of the largest penalties in the history of relevant US regulatory agencies, as the OCC recorded the largest fine in its history, while the $1.2 billion fine imposed by FinCEN is the third-largest penalty in its history, according to the involved agencies.

The actions came after it was determined that the bank's systems did not adequately monitor transactions worth trillions of dollars, despite the institution knowing there were significant deficiencies in its compliance programs.

Regulators indicated that the bank delayed reporting suspicious transactions valued at more than $5 billion, including over $1 billion in operations linked to national security risks, Chinese money laundering networks, fraud, and potential trade-based money laundering operations related to the southwestern border of the United States.

Failures persisted despite warnings
Investigations showed that the bank failed to maintain an effective anti-money laundering program, did not implement required due diligence procedures for certain foreign bank accounts, and failed to file timely reports of suspicious activities. Within the settlement, the bank admitted to willfully violating the Bank Secrecy Act.

The OCC identified significant deficiencies in 2023, then issued a cease-and-desist order in December 2024, requiring the bank to strengthen its anti-money laundering program. However, internal control failures continued, allowing transactions suspected of being linked to trade-based money laundering to pass through undetected in a timely manner.
Additional fines for sanctions violations
The separate settlement with OFAC amounted to $11.6 million, based on 475 potential violations of US sanctions programs targeting Iran, Russia, Belarus, Myanmar, and Somalia, in addition to sanctions related to drug trafficking and global terrorism.

The violations included processing payments through sanctioned banks, allowing certain individuals listed on sanctions lists to conduct transactions, and delaying updates to federal watchlists. These violations reveal that the deficiencies were not limited to detecting suspicious funds but extended to counterparty verification procedures and compliance with restrictions on financial transactions.
Independent reviews to contain risks

Under the regulatory measures, the bank must engage an independent party to review previously undetected suspicious transactions, undergo additional reviews of anti-money laundering controls, along with enhancing employee training, testing, auditing, and cooperation with federal authorities.

The bank stated that it has invested billions of dollars in technology and allocated thousands of employees to combat financial crimes, confirming its cooperation with regulators and progress in addressing deficiencies.

The fines represent a direct cost to third-quarter results, while new obligations require the bank to continue spending on reforming oversight and compliance systems. The case illustrates how weak banking controls can turn into a significant financial burden even for the largest US institutions.