Amex fined US$350 million for anti-money laundering lapses
Penalty will not impact the full-year 2026 guidance it previously issued, says Amex
Federal regulators have imposed a substantial US$350 million penalty on American Express for anti-money laundering lapses, according to a statement from the US Office of the Comptroller of the Currency (OCC) on Thursday. The penalty stems from the bank's failure to detect and report suspicious money laundering activities totaling approximately US$13 billion over the past decade.
The OCC cited systemic breakdowns in American Express's suspicious activity monitoring and reporting processes as the cause. Despite the fine, American Express stated that it will not impact its previously issued full-year 2026 guidance, and costs associated with addressing the issues are not expected to affect 2027 guidance. American Express CEO Steve Squeri acknowledged the need for improvement in the company's compliance programs and reported that the firm took appropriate action to identify and report the misuse of its products for fraudulent transactions.
The fine contrasts with the more deregulatory approach taken by the Trump administration during its second term, which has seen a reduction in financial regulations for large US banks.
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