Washington, D.C. – In a shocking move, the Federal Deposit Insurance Corporation (FDIC) has assessed a $5 million civil money penalty against Shinhan Bank America, a New York-based bank, for violating the Bank Secrecy Act (BSA) and its implementing anti-money laundering (AML) regulations.
The violations, which resulted in a massive $30 million penalty, include failure to implement an adequate AML Program over an extended period, inadequate BSA/AML internal controls, and being unable to adequately identify and manage illicit financial activity risk to the institution.
As part of a concurrent action, the Financial Crimes Enforcement Network (FinCEN) assessed a civil money penalty of $15 million for similar violations of the BSA. The payment of $15 million to the United States Department of the Treasury will satisfy both FDIC and FinCEN assessments.
The New York State Department of Financial Services also announced the assessment of a civil money penalty of $10 million against Shinhan Bank America for violations of state AML laws and regulations.
The FDIC determined that Shinhan Bank America’s inadequate AML Program led to the bank’s inability to identify and manage illicit financial activity risk, ultimately resulting in massive money laundering schemes.
According to the FDIC, the $30 million penalty is a severe warning to banks and financial institutions to take money laundering seriously and implement adequate AML Programs to prevent such violations.
Carroll Kim, an FDIC spokesperson, stated, ‘The FDIC takes these violations very seriously and will continue to enforce the Bank Secrecy Act to protect the integrity of the financial system.’
In related news, it’s unclear what steps Shinhan Bank America will take to rectify the situation and prevent similar violations in the future.
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Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂ
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