Us Bank Deferred Prosecution Agreement
As discussed in the resolution process, this resolution also reinforces the hope that financial institutions will invest adequate resources to ensure a strong BSA/AML compliance function. Regulated entities are not only expected to employ a sufficient number of qualified personnel, but also regularly update, test and invest in other AML-related systems to update transaction control and other AML-related systems to ensure they are up to date and properly monitor the risk of MRL. U.S. Bank found that the enforcement actions were specific to Mr. LaFontaine and not to the bank. According to FinCEN, U.S. Bank used transaction monitoring software during and before Mr. LaFontaine`s tenure, capping the number of warnings generated. The cap prevented the bank from filing suspicious activity reports, limiting the ability of law enforcement to detect criminal activity, FinCEN said. The proceedings are conducted by the Agency`s Money Laundering and Asset Recovery Division.
U.S. Assistant Attorneys Niketh Velamoor and Jonathan Cohen are charged with the indictment. The Agency`s Civil Fraud Department handles regulatory measures on behalf of FinCEN. U.S. Assistant Counsel Christopher Harwood and Caleb Hayes-Deats are in charge of the case. Mr. LaFontaine was noted internally that the bank`s transaction monitoring software was insufficient and that the bank`s staff was too thin to obtain money laundering, according to FinCEN. The U.S. bank was fined $613 million in February 2018 for calling federal prosecutors and supervisory authorities, including FinCEN, weak controls to combat money laundering. The bank`s parent company, U.S.
Bancorp, also entered into a two-year deferred lawsuit agreement with federal lawyers at that time. The OCC, the Financial Crimes Enforcement Network („FinCEN“) and the Board of Governors of the Federal Reserve System (FRB) have also entered into agreements with the Bank for related regulatory measures. For the purposes of their action, also filed today, FinCEN is represented by the civil division of this office.