Union Bank of California will pay $31.6 million in penalties and forfeitures for failing to adequately monitor a Mexican money transfer business that moved millions of dollars in illegal drug proceeds through the bank. Union Bank, a unit of San Francisco-based UnionBanCal Corp., will forfeit $21.6 million in a deferred prosecution agreement with the U.S. Justice Department, the department said in a statement Monday. The bank also will pay a total $10 million to settle penalties from the U.S. Treasury Department's Office of the Comptroller of the Currency and Financial Crimes Enforcement Network. The Justice Department charged Union Bank with...
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.
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.