The Treasury just fined BofA $1.2 billion, saying it didn't report Chinese money laundering networks

The Treasury has fined the Bank of America more than $1.2 billion.

Nicolò Campo/LightRocket via Getty Images The Treasury Department has imposed a fine of more than $1.2 billion on the Bank of America.

It said BofA failed to report suspicious transactions tied to Chinese money-laundering networks.

A BofA spokesperson said the fine would impact the bank's coming quarterly earnings.

The US Treasury Department said it is imposing more than $1.2 billion in penalties against Bank of America .

The Treasury said in a Tuesday news release that the bank — the country's second-largest — failed to report over $5 billion in suspicious transactions to the Financial Crimes Enforcement Network.

This included Chinese money-laundering networks along the US's southwestern border.

It added that the bank had also violated several sanctions programs, "including on Iran, Russia, narcotics, and global terrorism." The Treasury did not provide details of when these missteps occurred.

Its release said the fine was the third-largest penalty it had imposed in its history.

"When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls, exposing the entire US financial system to significant illicit finance risks," Treasury Secretary Scott Bessent said in the release.

"Today's actions send a clear message that even the biggest financial institutions are not above the law," he added.

The Treasury said that the bank lacked trained staff who could monitor suspicious activity.

Along with the fine, the Treasury has ordered the bank to work with a third party to identify and report previously undetected suspicious transactions, and to undergo an independent review of its suspicious activity identification.

A BofA spokesperson said in a statement that it is working with regulators on the issue.