Bank of America fined 1.2 billion dollars over money laundering failures

United States regulators have hit Bank of America with penalties totaling more than 1.2 billion dollars on Tuesday, October 13, 2026. The Financial Times, PYMNTS, the Wall Street Journal, ABC News, and Fox Business all report that the penalties stem from alleged violations of anti-money laundering and sanctions laws. [1][5][7][9][10][11]

The Financial Times reported that the bank failed to flag 5 billion dollars in suspicious transactions. According to the Financial Times, these transactions were linked to suspected illicit finance originating from China and the southern United States border. PYMNTS reported that three federal agencies imposed penalties exceeding 1.21 billion dollars following an announcement from the Treasury Department. [1][5][7]

Anti-money laundering measures consist of laws and practices meant to help regulated institutions detect, prevent, and report financial crimes to enforcement agencies. These regulatory penalties follow recent action across the banking industry, as FTMQ Business reported earlier that federal regulators fined American Express 350 million dollars over anti-money laundering compliance failures. [13][15]

Following the penalty announcement, Investing.com News reported that Bank of America stock experienced a decline during trading. Seeking Alpha Markets noted that Bank of America had previously maintained top profitability grades among major financial stocks. [2][4]