American Express fined $350 million for insufficient anti-money laundering program
AXP•The OCC and Federal Reserve fined American Express $350 million, saying its anti-money laundering program was insufficient and it failed to identify, evaluate and sufficiently report roughly $13 billion in suspicious activity over the past decade.
1. Regulators cite program gaps
The OCC and Federal Reserve announced an enforcement action against American Express after determining its programs to identify potential money laundering were insufficient. The regulators cited inadequate resources, inexperienced staff, weak training and internal control gaps.
2. Credit card business scrutiny
The OCC said systemic breakdowns in monitoring and reporting meant the lender failed to identify, evaluate and sufficiently report roughly $13 billion in suspicious activity over the past decade. It said American Express focused on risks in its relatively narrow deposit products while giving insufficient attention to its much larger credit card business, and identified shortcomings in customer due diligence and identification programs.
3. Company response
American Express did not admit or deny the regulators’ findings. A spokesperson did not immediately respond to a request for comment.
