US regulator OCC orders Wells Fargo to shore up AML and risk management procedures
The US Office of the Comptroller of the Currency (OCC) has reached a formal agreement with Wells Fargo after identifying various weaknesses in how the bank manages and mitigates financial crime risks.
Wells Fargo hit with OCC order over AML controls
The regulator states that “deficiencies relating to the bank’s financial crimes risk management practices and anti-money laundering (AML) internal controls” are at the centre of the agreement.
Several areas across the bank have been highlighted for their shortcomings, including suspicious activity and currency transaction reporting, customer due diligence, and its customer identification and beneficial ownership programmes.
Although choosing not to fine Wells Fargo for the identified flaws, the OCC has instructed Wells Fargo to commence several corrective actions within an agreed timeframe.
These include enhancements to AML and sanctions risk management practices, maintaining an independent compliance committee of at least three members, and producing and actioning a written report of specific corrective procedures, which will be subject to the review of an official examiner.
Most notably, the OCC has also ordered Wells Fargo to refrain from expanding into new products, services and geographies that pose medium-to-high risk without prior written approval.
A statement released by Wells Fargo asserts that the bank is currently “working to address a substantial portion of what’s required in the formal agreement”.
“We are committed to completing the work with the same sense of urgency as our other regulatory commitments,” it adds.
Wells Fargo was previously hit with a $125 million penalty from the Securities and Exchange Commission (SEC) last year after employees from its securities, financial advisory and clearing subsidiaries were found to have engaged in “pervasive and longstanding ‘off-channel’ communications”, in violation of federal securities law.
I was scammed out of almost $600 from my account and Wells Fargo would not give me back my money. I live pay check to paycheck and I’m still reeling from this loss