Federal Reserve Targets American Express Over AML Deficiencies

The Federal Reserve Board announced an enforcement action against American Express Company, citing the firm's failure to sufficiently detect and report certain suspicious activity related to money laundering. According to Fed_Press, regulators identified significant deficiencies in the implementation of the company's enterprise-wide anti-money laundering program, particularly at its subsidiary national bank.

Regulatory Action and Oversight

The enforcement measures aim to ensure that American Express operates in compliance with all applicable United States laws and regulations. Concurrently, the Office of the Comptroller of the Currency, which serves as the primary federal regulator for the firm's national bank, issued a separate enforcement action against the banking subsidiary.

Key facts

• The Federal Reserve Board announced an enforcement action against American Express Company on Thursday.
• The action addresses failures to sufficiently detect and report suspicious activity related to money laundering.
• Regulators identified significant deficiencies in the enterprise-wide anti-money laundering program, specifically at the firm's subsidiary national bank.
• The Office of the Comptroller of the Currency issued a separate enforcement action against the subsidiary national bank.