WASHINGTON — The Federal Reserve Board and Treasury's Financial Crimes Enforcement Network have announced $65 million in penalties assessed against American Express Bank International and American Express Travel Related Services Company, Inc. for violations of the Bank Secrecy Act.
The Fed and FinCEN assessed $20 million in civil penalties against AEBI plus another $5 million for its travel company. The orders were coordinated with the Department of Justice, which is announcing a deferred prosecution agreement with AEBI in connection with charges that the company failed to maintain an anti-money laundering program. AEBI will forfeit $55 million to the United States to settle the Department's forfeiture claims. A deal was struck to bring this all to $65 million if satisfied.
AEBI and its Travel Related Services, without admitting or denying fault, agreed to the penalties and a Cease and Desist order was issued against AEBI to take corrective actions by the Fed.
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"Today's action by the Federal Reserve underscores the necessity for banking institutions to have anti-money laundering controls in place that are commensurate with the level of risk associated with their operations," Fed Director of Banking Supervision and Regulation Roger T. Cole said yesterday in making the announcement.
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