Business · Singapore Bureau
American Express hit with US$350m fine for AML compliance failures
The US Office of the Comptroller of the Currency has imposed a substantial penalty on American Express for significant deficiencies in its anti-money laundering compliance programmes. The enforcement action underscores mounting regulatory pressure on financial institutions to strengthen their controls against illicit financial activity.
LSN Singapore ·
American Express has been fined US$350 million by the Office of the Comptroller of the Currency (OCC) for failing to maintain adequate anti-money laundering safeguards, marking the latest in a series of regulatory actions against major financial firms over compliance shortcomings.
The OCC cited the payment card company for deficiencies across its compliance programmes, including inadequate systems designed to detect and prevent money laundering activities. The regulator found that American Express did not maintain sufficient controls to monitor customer transactions and flag suspicious financial activity effectively.
The penalty reflects heightened regulatory scrutiny of financial services companies' ability to combat money laundering and terrorist financing. US banking regulators have increasingly focused on ensuring institutions implement robust compliance frameworks and invest adequately in compliance infrastructure.
American Express said it has taken steps to strengthen its compliance controls and will continue working with regulators to address the identified deficiencies. The fine adds to a growing list of enforcement actions against major financial institutions over anti-money laundering programme failures in recent years.