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U.S. Bank charged with USD 613 mln for failing to guard money laundering

Friday 16 February 2018 01:59 CET | News

U.S. Bank, the fifth-largest commercial bank by assets in the US, was charged with USD 613 mln by the federal authorities with failing to guard against money laundering.

The Justice Department accused U.S. Bank of severely neglecting anti-money laundering rules, helping a payday lender operate an illegal business and lying to a regulator about its plans for tracking potential criminal activity by bank customers. Federal prosecutors reached an agreement with U.S. Bank to defer prosecution as long as the bank could show it had improved its monitoring of customer transactions.

For about five years, senior bank employees tried to balance their security system’s constant alerts about suspicious customer activity against internal staffing limitations, the authorities said.

To settle the Justice Department charges and cases brought by other regulators, the bank agreed to pay various fines and penalties. 


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Keywords: U.S. Bank, money laundering, AML, financial crime, US, transaction monitoring
Categories: Fraud & Financial Crime
Companies:
Countries: World
This article is part of category

Fraud & Financial Crime