Bank of America hit with $1.2 billion Treasury penalty over China-linked money-laundering risks

The Treasury Department levied a $1.2 billion civil penalty against Bank of America, citing failures to mitigate and report priority national-security risks, notably Chinese money-laundering networks and illicit finance connected to the southwest border. Treasury Secretary Scott Bessent emphasized that the sanction sends a clear message that size does not exempt institutions from compliance obligations. This enforcement comes shortly after a Department of Education audit flagged incomplete disclosures at Duke University’s joint campus with Wuhan University, highlighting Chinese defense-related research ties.

North Carolina’s recent legislative activity, such as the Farmland and Military Protection Act, contrasts with a pattern of compliance lapses, including a guilty plea in a $92 million money-laundering scheme involving Chinese nationals and a California resident, and prior export violations by local firms. Authorities have repeatedly warned that lapses in financial and export controls can expose the broader U.S. system to significant security threats.