U.S. Bancorp to Pay More Than $600 Million to Resolve Anti-Money Laundering Failures

11:58 AM, Feb 15, 2018 — U.S. Bancorp (USB), the parent company of the fifth-largest bank in the US, said it will pay $613 million for failing to have adequate anti-money laundering programs in place and for not filing a report on suspicious activity.

The company will pay penalties assessed by the US Attorney’s Office for the Southern District of New York, the Office of the Comptroller of the Currency, the Federal Reserve Board and the Financial Crimes Enforcement Network or FinCEN, it said in a statement Thursday.

U.S. Bank operated an anti-money laundering, or AML, program “‘on the cheap’ by restricting headcount and other compliance resources and then imposed hard caps on the number of transactions subject to AML review in order to create the appearance that the program was operating properly,” said Manhattan US Attorney Geoffrey Berman in a separate statement.

The Minneapolis-based lender hid its “wrongful approach” from the Office of the Comptroller of the Currency, or OCC, and it “failed to detect and investigate large numbers of suspicious transactions,” Berman said.

The bank also failed to report suspicious activity related to a client who was convicted last year for offences linked to a fraudulent payday lending scheme, Berman said.

U.S. Bank’s president and chief executive officer, Andy Cecere, said the company regrets and has “accepted responsibility for the past deficiencies in our AML program. Our culture of ethics and integrity demands that we do better.”

The bank has different AML leadership since 2014, more transparent reporting and escalation processes, improved controls and training and expanded transaction monitoring to “identify potentially suspicious activity.”

Companies: U.S. Bancorp
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