Live news: US regulators identify lapses in Wells Fargo’s anti-money laundering practices

Financial Crimes Enforcement Network (FinCEN) issues $75 million civil penalty

The Financial Crimes Enforcement Network (FinCEN) has issued a $75 million civil penalty against Wells Fargo Bank, N.A. for willful violations of the Bank Secrecy Act (BSA) and its implementing regulations. The penalty stems from FinCEN’s investigation into Wells Fargo’s anti-money laundering (AML) compliance program, which found that the bank failed to adequately monitor and report suspicious activity, failed to implement an effective customer due diligence program, and failed to maintain an adequate risk assessment process.

Wells Fargo failed to adequately monitor and report suspicious activity

FinCEN’s investigation found that Wells Fargo failed to adequately monitor and report suspicious activity on numerous occasions. For example, the bank failed to file Suspicious Activity Reports (SARs) on transactions that were indicative of money laundering, even when the transactions were identified as suspicious by the bank’s own internal monitoring systems.

Wells Fargo failed to implement an effective customer due diligence program

FinCEN’s investigation also found that Wells Fargo failed to implement an effective customer due diligence program. The bank did not adequately identify and verify the identities of its customers, and it failed to obtain and maintain sufficient information about its customers’ beneficial owners.

Wells Fargo failed to maintain an adequate risk assessment process

FinCEN’s investigation further found that Wells Fargo failed to maintain an adequate risk assessment process. The bank did not adequately assess the risks of money laundering and terrorist financing posed by its customers, and it failed to take appropriate steps to mitigate those risks.

FinCEN’s penalty is the largest ever imposed against a bank for BSA violations

The $75 million civil penalty imposed by FinCEN is the largest ever imposed against a bank for BSA violations. The penalty reflects the seriousness of Wells Fargo’s violations and the need to deter other banks from committing similar violations.

Wells Fargo has agreed to take steps to improve its AML compliance program

As part of the settlement with FinCEN, Wells Fargo has agreed to take a number of steps to improve its AML compliance program. These steps include implementing an enhanced customer due diligence program, implementing an enhanced risk assessment process, and improving its suspicious activity monitoring systems.