Shinhan Bank America, a New York-based bank, has been hit with a $30 million civil money penalty for violating the Bank Secrecy Act (BSA) and its implementing anti-money laundering (AML) regulations, as well as failing to comply with an FDIC-issued consent order.
The FDIC assessed a civil money penalty of $5 million against the bank, while the Financial Crimes Enforcement Network (FinCEN) assessed a civil money penalty of $15 million for violations of the BSA. The payment of $15 million to the United States Department of the Treasury will satisfy both FDIC and FinCEN assessments.
In a separate action, the New York State Department of Financial Services assessed a civil money penalty of $10 million against Shinhan Bank America for violations of state AML laws and regulations.
The FDIC determined that the bank failed to implement an adequate AML program over an extended period of time, resulting in inadequate BSA/AML internal controls. This allowed the bank to be unable to adequately identify and manage illicit financial activity risk to the institution.
The bank’s failure to comply with the FDIC-issued consent order, dated June 12, 2017, was also cited as a reason for the penalty. The consent order was issued after the bank was found to have violated the BSA and its implementing AML regulations.
Shinhan Bank America has been ordered to pay the $30 million penalty, which will be distributed between the FDIC, FinCEN, and the New York State Department of Financial Services. The bank’s failure to comply with regulations has resulted in a significant financial penalty, highlighting the importance of adhering to anti-money laundering laws and regulations.
The FDIC’s action against Shinhan Bank America serves as a warning to other financial institutions to ensure they are complying with regulations and taking adequate measures to prevent money laundering and other illicit financial activities.
The case highlights the importance of effective AML programs and the need for financial institutions to prioritize compliance with regulations.
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Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂÂ
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