Bank of America hit with $1.21bn fine for failing to report suspicious transactions

Bank of America has been fined $1.21 billion by United States regulators for failing to detect and report billions of dollars in suspicious transactions linked to potential money laundering and other illicit activities.

According to Peoples Gazette, the US Treasury Department announced the penalty on Tuesday, describing it as the third-largest fine in its history.

Regulators said the bank failed to report more than $5 billion in suspicious transactions, including $1 billion involving national security and other financial crime risks.

Treasury Secretary Scott Bessent warned that such failures threatened the integrity of the American financial system.

“Even the biggest financial institutions are not above the law,” the department stated.

The penalties include a record $750 million fine imposed by the Office of the Comptroller of the Currency.

Regulators also ordered an independent review of previously undetected suspicious transactions, particularly those involving Mexican cartels, drug trafficking, Iran and Russia.

The bank acknowledged its compliance responsibilities and pledged continued improvements.