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OCC and Fed Fine American Express $350 Million Over AML Deficiencies

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OCC and Fed Fine American Express $350 Million Over AML Deficiencies

American Express takes its responsibility to fight financial crime seriously and is committed to addressing concerns outlined by banking regulators, Chairman and CEO Stephen J. Squeri said in a statement released Thursday (Oct. 8).

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Squeri issued the statement on the same day the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board issued consent orders with American Express and some of its subsidiaries.

The OCC said in a Thursday press release that it issued a cease-and-desist order and a $350 million civil money penalty against American Express National Bank after finding that the bank failed to establish and maintain an adequate Bank Secrecy Act (BSA) and anti-money laundering (AML) compliance program.

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The deficiencies identified by OCC included inadequate resources for the program, failure to tailor BSA/AML risk assessment to business activities and systemic breakdowns in suspicious activity monitoring and reporting processes, according to the release.

“The OCC expects banks of American Express’s size and complexity to devote sufficient resources to ensure compliance with laws and regulations designed to detect and prevent money laundering, which are critical to both economic and national security,” Comptroller of the Currency Jonathan Gould said in the release.

The Federal Reserve Board said in a Thursday press release that it issued an enforcement action against American Express Company to address the firm’s failure to sufficiently detect and report suspicious activity related to money laundering as well as deficiencies in how the company’s enterprisewide AML program was implemented.


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