Federal bank examiners failed for at least four years to identify widespread signs of money laundering at Wachovia Bank, frustrating officials who helped levy a $160 million penalty against the institution last week.
For money transmitters, proving to a bank that your company isn't too big of an anti-money laundering risk to take on can be difficult, even more so when you've encountered compliance problems.
The U.S. Justice Department entered into 60 percent fewer pre-trial agreements with corporations seeking to avoid criminal prosecutions in 2008 than in the previous year, according to a study released Friday.
AML-related enforcement actions issued by the OCC have more than halved since 2005, from 32 actions in 2005 to 12 during the first three quarters of 2007, as the number of terminated actions have more than double in the same period, Dan Stipano, the agency's deputy chief counsel, said.
Facing possible regulatory sanctions for continued compliance deficiencies, Union Bank of California has created the new position of chief risk officer responsible for overseeing anti-money laundering and risk compliance reporting companywide.
The bank, a subsidiary of Tokyo-Mitsubishi UFJ, said it set aside $10 million after the OCC disclosed that it plans to issue a civil money penalty and cease and desist order against the institution.