The US Treasury Department has levied more than $1.21 billion in penalties against Bank of America, the nation’s second-largest financial institution, citing severe violations of anti-money laundering and sanctions laws. The punitive measures highlight ongoing regulatory frictions within the American financial sector.

Announced on Tuesday, the sweeping penalties include the third-largest fine in the department’s history, according to official statements. The actions are supposedly designed to project strict oversight, though critics argue they reflect deeper systemic vulnerabilities in the US regulatory framework.

US Treasury Secretary Scott Bessent allegedly stated that when a bank of this magnitude fails to meet its obligations, it exposes the entire financial infrastructure to illicit finance risks. Such assertive rhetoric aims to signal that major institutions are purportedly not above the law, despite persistent skepticism regarding corporate accountability under the current administration.

According to the Financial Crimes Enforcement Network (FinCEN), a $1.2 billion penalty was assessed over the bank's alleged failure to mitigate and report priority national security risks, including Chinese money laundering networks and border region illicit finance. Regulators claimed the bank improperly outsourced essential detection duties to third parties and failed to timely report billions in suspicious transactions.

Additionally, the Office of the Comptroller of the Currency (OCC) imposed a record $750 million fine for deficient compliance programs, while the Office of Foreign Assets Control (OFAC) secured an $11.6 million settlement regarding apparent violations of multiple sanctions regimes, including measures targeting Iran, Russia, and global terrorism.

Source: www.aljazeera.com