American Express Gets $350 Mln Fine For Lapses In Anti-money Laundering Compliance Program
(RTTNews) - Integrated payments technology company American Express Co. (AXP) has been hit with a $350 million fine for deficiencies in its affiliated bank's Bank Secrecy Act or BSA and anti-money laundering or AML compliance program.
The US Office of the Comptroller of the Currency and the Federal Reserve imposed a US$350 million fine on American Express following an assessment that the financial institution's anti-money laundering programs were inadequate. The regulators claimed the company potentially overlooked billions of dollars in suspicious activity. American Express, through its national bank, allegedly lacked sufficient resources, inexperienced staff, weak training, and gaps in internal controls, leading to systemic breakdowns in monitoring and reporting.
The regulators emphasized that banks of American Express's size and complexity must allocate adequate resources to ensure compliance with anti-money laundering laws and regulations. Comptroller of the Currency Jonathan Gould pointed out that American Express had prioritized risks in its deposit products while neglecting its larger credit card business. The regulator also found shortcomings in customer due diligence and identification programs.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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