The U.S. Treasury Department said it is imposing $1.21 billion in penalties against Bank of America, the country's second-largest lender, for violating laws designed to prevent financial crimes.

"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 U.S. financial system to significant illicit finance risks," Treasury Secretary Scott Bessent said in a statement. "Today's actions send a clear message that even the biggest financial institution are not above the law."

Bank of America representatives didn't immediately respond to a Barron's request for comment on the Treasury Department's announcement. The bank is scheduled to report third-quarter earnings results on Wednesday.

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