Bank of America Settled Sanctions Violations for $11.6M
The bank paid over $11 million to resolve hundreds of apparent violations involving restricted international entities.
Updated on Oct. 13, 2026 in Financial Crime
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Bank of America reached an $11,662,930 settlement with the Department of the Treasury after admitting to 475 apparent violations of federal sanctions programs. The violations involved processing payments for blocked banks and failing to properly manage restricted accounts.
Why it matters
The settlement highlights the critical importance of maintaining rigorous compliance systems to prevent financial transactions with entities sanctioned for global terrorism, narcotics, or restricted regimes. It demonstrates the government's commitment to enforcing international trade regulations across the banking sector.
The Treasury Department's OFAC finalized an $11,662,930 settlement agreement concerning 475 apparent sanctions violations. The agency determined the violations were non-egregious, though the bank failed to voluntarily disclose most of the infractions.
The players
Bank of America
A multinational investment bank and financial services holding company that provides a range of banking products and services.
Department of the Treasury
The executive department responsible for managing federal finances, including the administration of economic and trade sanctions through its Office of Foreign Assets Control.
The details
The bank processed payments involving blocked financial institutions and mishandled two business accounts due to internal human errors. Furthermore, the institution failed to prioritize alerts for customers matching blocked persons and neglected to update its screening watchlists following new OFAC designations involving nations like Russia, Belarus, and Iran.
Timeline
The Department of the Treasury announced the settlement on October 13, 2026.
Legal Context
The settlement follows the established framework of the Office of Foreign Assets Control sanctions programs to penalize financial institutions for facilitating transactions with restricted entities. This action marks a recent enforcement milestone that reinforces the regulatory expectation for continuous watchlist updates in the financial sector.
This settlement serves as a reminder to the public that financial institutions must adhere to strict security protocols to prevent illicit funding. While the individual customer experience remains unaffected, the penalty reinforces the oversight mechanisms governing global financial safety.
The takeaway
Maintaining updated compliance software and robust internal review processes is essential for banks to avoid significant federal penalties. Customers should ensure their own financial dealings comply with current national and international regulations to avoid unintended association with restricted entities.
Further reading
For more on how regulatory bodies handle banking compliance, see the Financial Crime section.
More information
View the complete details of the case in the OFAC Enforcement Release.
Source note: This article includes information reported by Office of Foreign Assets Control | U.S. Department of the Treasury.
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