Washington, D.C. – The Federal Deposit Insurance Corporation (FDIC) has ordered Shinhan Bank America, New York, to pay a $5 million civil money penalty for violations of the Bank Secrecy Act (BSA) and its implementing anti-money laundering (AML) regulations. This penalty comes on the heels of an FDIC-issued consent order dated June 12, 2017, that Shinhan Bank America failed to comply with.
In a parallel move, the Financial Crimes Enforcement Network (FinCEN) imposed an additional $15 million civil money penalty for similar violations of the BSA. The total payment of $20 million will be remitted to the United States Department of the Treasury, covering both FDIC and FinCEN assessments.
Adding to the financial burden, the New York State Department of Financial Services (NYDFS) announced a separate civil money penalty of $10 million for Shinhan Bank America’s failure to comply with state AML laws and regulations. The bank was found to have inadequately implemented an anti-money laundering program over an extended period, allowing it to be vulnerable to illicit financial activities.
FDIC officials stated that the inadequate BSA/AML internal controls at Shinhan Bank America resulted in the institution’s inability to effectively identify and manage risks associated with illicit financial activity. This failure not only exposed the bank to potential legal repercussions but also endangered the integrity of the financial system.
The assessment of penalties against Shinhan Bank America serves as a stark reminder of the importance of robust compliance with AML regulations for financial institutions. It underscores the need for rigorous monitoring and enforcement by regulatory bodies to ensure that banks effectively combat money laundering and other financial crimes.
For further information, contact:
- FDIC: Carroll Kim, 202-898-7389
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