US regulators fine American Express $350 million over anti-money laundering failures
In short
US federal regulators have fined American Express $350 million for failing to identify and report money laundering in its systems, Chinese outlets reported on October 9. The Office of the Comptroller of the Currency (OCC) said the bank's monitoring failures meant about $13 billion in suspected trade-based money laundering over the past decade was not promptly identified and reported. The Federal Reserve also announced enforcement action against the company.
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US federal regulators have fined American Express $350 million because it failed to identify and report money laundering in its systems, 36Kr and Jiemian reported on October 9. CLS reported that US bank regulators imposed the fine on American Express National Bank over deficiencies in its anti-money laundering controls. The Federal Reserve also announced enforcement action against the New York-headquartered company, according to 36Kr and Jiemian. [ 1 , 2 , 3 ]
The Office of the Comptroller of the Currency (OCC) said in a statement that the compliance program of American Express's bank was deficient. "The bank's suspicious activity monitoring and reporting processes suffered systemic failures, causing it to fail to promptly identify, assess and adequately report about $13 billion in suspected trade-based money laundering that occurred over the past decade," the OCC said, as quoted by both outlets. 36Kr attributed its report to Sina Finance. [ 2 , 3 ]
Why it matters
The OCC describes systemic failures in suspicious activity monitoring and reporting at an American Express bank, covering roughly $13 billion in suspected laundering. Two federal regulators are acting against the company, according to the reports.
Key facts
- US regulators fined American Express $350 million. [ 1 , 2 , 3 ]
- The penalty relates to deficiencies in anti-money laundering controls. [ 1 , 2 , 3 ]
- The OCC said in a statement that the compliance program of American Express's bank was deficient. [ 2 , 3 ]
- The OCC said the bank failed to promptly identify, assess and adequately report about $13 billion in suspected trade-based money laundering over the past decade. [ 2 , 3 ]
- The Federal Reserve also announced enforcement action against the New York-headquartered company. [ 2 , 3 ]
Confirmed by several sources
- American Express was fined $350 million by US regulators over anti-money laundering deficiencies. [ 1 , 2 , 3 ]
- The OCC cited systemic failures in suspicious activity monitoring and reporting covering about $13 billion in suspected trade-based money laundering over the past decade. [ 2 , 3 ]
- The Federal Reserve announced enforcement action against American Express. [ 2 , 3 ]
Still unclear
- Which entity was fined. CLS names American Express National Bank, while 36Kr and Jiemian say the fine was imposed on American Express, the company.
- What the Federal Reserve's enforcement action involves. The reports say only that the Fed announced enforcement action, without details.
What local media are saying
Timeline, local time
- CLS reports US bank regulators have fined American Express National Bank $350 million over anti-money laundering deficiencies. [ 1 ]
- 36Kr, citing Sina Finance, reports the fine with details from the OCC statement and the Federal Reserve's enforcement action. [ 2 ]
- Jiemian reports the fine and the OCC's statement. [ 3 ]