CONTACT US

For any general inquiries, please fill in the following contact form:

SUBMIT

U.S. Bancorp to pay $613 million for money-laundering violations

U.S. Bancorp to pay $613 million for money-laundering violations

By Pete Schroeder

WASHINGTON (Reuters) - The U.S. Justice Department has reached a $613 million settlement with U.S. Bancorp (USB.N) over charges that it willfully failed to have an adequate anti-money-laundering program, the department said on Thursday. 

As part of the settlement, U.S. Bancorp agreed to forfeit $453 million and to pay fines to the Treasury Department, the Office of the Comptroller of the Currency and the Federal Reserve, the Justice Department said in a statement.

It said that the bank, through its subsidiary U.S. Bank National Association, deliberately ran an inadequate anti-money-laundering program from 2009 to 2014. U.S. Bancorp failed to detect large numbers of suspicious transactions and concealed its missteps from regulators, it said.

“We regret and have accepted responsibility for the past deficiencies in our AML (anti-money-laundering) program. Our culture of ethics and integrity demands that we do better,” President and Chief Executive Andy Cecere said in a statement.

Under the settlement, the Justice Department agreed to dismiss the charges against the Minneapolis-based bank in two years if it meets the terms of the agreement. The bank said it has overhauled its anti-money-laundering policies in recent years to address the issues.

The Justice Department said the bank limited the number of transactions its systems would flag as suspicious based on its staffing levels. A 2009 memo from the bank’s anti-money laundering officer warned that staff was “stretched dangerously thin,” and U.S. Bancorp hid its limitations from regulators, it said.

The Justice Department also claimed the bank processed Western Union transactions for non-customers, even though those transactions would not be monitored. The bank barred those wire transfers in 2014.

Authorities also charged that the bank willfully failed to report suspicious banking activities of a longtime customer, Scott Tucker, from 2011 to 2013. 

https://uk.reuters.com/article...

MORE NEWS

GDPR: 'Don't panic!' data watchdog tells firms

GDPR: 'Don't panic!' data watchdog tells firms
Tough new data protection laws come into effect on Friday that promise to bolster consumer rights. But there are concerns that many firms ...

Google and Facebook accused of breaking GDPR laws

Google and Facebook accused of breaking GDPR laws
Complaints have been filed against Facebook, Google, Instagram and WhatsApp within hours of the new GDPR data protection law taking effect....

Top DFB officials Wolfgang Niersbach, Theo Zwanziger charged with tax evasion over 2006 ...

Top DFB officials Wolfgang Niersbach, Theo Zwanziger charged with tax evasion over 2006 World Cup
Prosecutors have charged two former DFB presidents with tax evasion in connection with the 2006 World Cup affair. The charges relate to a ...

Who's behind the blog

Who's behind the blog

SOCIAL MEDIA