WASHINGTON — Last week the Federal Reserve Board and Treasury's Financial Crimes Enforcement Network announced a $65 million assessment against American Express Bank International and American Express Travel Related Services Company, Inc. for Bank Secrecy Act violations.

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.

The penalties to be paid by the American Express entities were worked out to $65 million. FinCEN's total penalties of $25 million will be satisfied by a single $10 million payment to the Treasury Department, and the remaining $15 million satisfied by a portion of the $55 million forfeiture to the Department of Justice. The Federal Reserve Board's $20 million penalty will be deemed satisfied by the payments made by AEBI to the U.S. Department of Justice and FinCEN.