Bank of America Corporation (BAC) Downplayed AML and Sanctions Compliance Failures Case
$BAC investors filed a claim against Bank of America Corporation, its CEO, and its CFO for touting its progress on required corrective actions under the 2024 OCC Consent Order, while failing to disclose that its anti-money laundering and sanctions compliance failures were systemic, inadequately remediated, and likely to lead to significant regulatory penalties.
After the U.S. Treasury announced more than $1.21 billion in penalties and settlements against Bank of America, N.A., and the Company reported a resulting charge in its third-quarter results, its stock fell 4.8% on October 14, 2026, from $53.96 to $51.39 per share.
$BAC investors can join this case to be notified about potential recovery.
Case Details:
Bank of America is a multinational bank holding company that conducts most of its banking through Bank of America, N.A. (BANA). On December 23, 2024, the OCC issued a cease-and-desist order against BANA over deficiencies in its Bank Secrecy Act, anti-money laundering, and sanctions compliance programs. During the Class Period, Defendants described the deficiencies as relating to “certain aspects” of BANA’s processes. They said the Company had “already completed significant steps to satisfy requirements of the Consent Order” and did not expect a “material adverse financial impact.”
After the market closed on October 13, 2026, the Treasury announced coordinated enforcement actions. FinCEN assessed a $1.2 billion penalty, including credit for a $750 million OCC penalty, and BANA admitted that it willfully violated the BSA and missed or delayed detecting and reporting more than $5 billion in suspicious activity. OFAC announced an $11.6 million settlement.
The OCC found that BANA had failed to complete significant corrective steps and that its program remained deficient. On October 14, 2026, Bank of America reported that the regulatory settlement charge reduced third-quarter diluted EPS by $0.17. A J.P. Morgan analyst called the charge “obviously a surprise” on the earnings call.
Based on these events, $BAC investors filed a claim against Bank of America Corporation, alleging the Company:
Downplayed the scope of the compliance deficiencies underlying the 2024 Consent Order
Overstated its progress in remediating its BSA, AML, and sanctions compliance failures
Failed to disclose that the failures were systemic and had gone unaddressed despite internal warnings
Understated the expected regulatory penalties and financial impact
Investors argue that had the truth about Bank of America’s compliance failures been disclosed, its stock would not have traded at artificially inflated prices during the Class Period.