# Bank of America regulatory penalties and compliance failures

> Live situation record from CLSTR: https://clstr.news/situations/bank-of-america-regulatory-penalties-and-compliance-failures
> Updated: 2026-10-19T07:12:07.000Z. Sources: 122. Developments: 2.

Bank of America has faced significant regulatory penalties totaling over $1.2 billion for violations of anti-money laundering and sanctions laws. The Financial Crimes Enforcement Network (FinCEN) assessed a $1.2 billion penalty for failures to mitigate national security risks, including Chinese money-laundering networks and illicit finance near the US-Mexico border. The bank reportedly failed to timely report over $5 billion in suspicious transactions. Additionally, the Office of the Comptroller of the Currency (OCC) imposed a $750 million fine, its largest in history, for deficient programs, while the Office of Foreign Assets Control (OFAC) secured an $11.6 million settlement regarding sanctions violations involving Iran and Russia.

Following these penalties, Bank of America shares fell 8%. Investigations revealed that the bank’s transaction-monitoring system used thresholds that were too high to flag suspicious activity, leaving approximately $4 billion in transactions unidentified and creating a backlog of nearly 200,000 cases. The regulatory settlement, which resulted in a $1.2 billion non-tax-deductible charge, contributed to a third-quarter earnings miss, with reported earnings dropping to $6.9 billion from $8.3 billion the previous year.

## Claims

- US regulators imposed $1.21 billion in penalties on Bank of America. (corroborated by 2 sources)
- Bank of America shares fell 8% following the regulatory penalty. (single source)
- The penalty is the largest fine ever imposed by the Office of the Comptroller of the Currency. (single source)
- The bank's transaction-monitoring systems failed to identify approximately $4 billion in suspicious activity. (single source)
- Bond-trading revenue declined 17% to $2.55 billion. (single source)
- Bank of America reported third-quarter earnings of $6.9 billion, or $0.91 per share. (single source)

## Timeline

### 2026-10-19: Bank of America shares fall after $1.21 billion regulatory penalty

Bank of America shares dropped 8% after US regulators imposed a $1.21 billion penalty for money laundering control failures and sanctions violations.

3 sources. https://clstr.news/cluster/bank-of-america-shares-fall-after-121-billion-regulatory-penalty

### 2026-10-13: Bank of America fined $1.2 billion for money laundering and sanctions violations

Bank of America faces over $1.2 billion in US federal penalties for anti-money laundering failures and sanctions violations, including risks linked to Chinese money laundering networks.

119 sources. https://clstr.news/cluster/bank-of-america-fined-12-billion-for-money-laundering-and-sanctions-violations

---
Cite as: Bank of America regulatory penalties and compliance failures. CLSTR, https://clstr.news/situations/bank-of-america-regulatory-penalties-and-compliance-failures