The Trump administration imposed more than $1.21 billion in penalties on Bank of America after federal regulators concluded that the lender did not promptly report over $5 billion in suspicious transactions. The Financial Times reported that the action includes a $1.2 billion assessment from the Treasury Department’s Financial Crimes Enforcement Network, which credits a $750 million penalty from the Office of the Comptroller of the Currency.
The OCC said its $750 million civil assessment is the largest in the agency’s history. Treasury also announced an $11.6 million settlement through the Office of Foreign Assets Control over 475 apparent violations of sanctions programs involving Iran, Russia, narcotics trafficking, and global terrorism.
Regulators said more than $1 billion of the unreported activity involved national security or other priority concerns. Those transactions included potential Chinese money laundering networks, fraud, and suspected trade based money laundering connected substantially to the southwest border, according to the Treasury announcement.
“Financial institutions are on the front lines of protecting our economic and national security,” Treasury Secretary Scott Bessent said. “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 US financial system to significant illicit finance risks.”
The Financial Times reported that Bank of America had already faced a December 2024 cease and desist order requiring it to address shortcomings in its Bank Secrecy Act program. The latest consent order requires the lender to retain an independent third party to review past activity, identify suspicious transactions that the bank missed, and report them to FinCEN.
Bank of America said it would record a $1.2 billion third quarter charge that would cut earnings by 17 cents per share. “Financial crime compliance is serious, and we are responsible for getting it right,” the bank said. “We have invested billions of dollars in technology and dedicated thousands of employees to combat financial crime.”
President Trump had separately criticized Bank of America chief executive Brian Moynihan over claims that the bank denied him an account, according to the Financial Times. The enforcement action nevertheless rests on regulators’ findings involving compliance operations, not that political dispute.
An America First financial agenda should make large institutions answerable to the nation they serve. The penalties are a welcome step, but Washington should strengthen oversight, curb systemic financial power, and consider public ownership or control where strategic national interests require it over corporate profit. Countries are not economic zones for oligarchs to exploit.
