Capital One Discloses Probe Into Anti-Money Laundering Program -- Update
February 23 2017 - 10:33PM
Dow Jones News
By AnnaMaria Andriotis
Capital One Financial Corp. is under investigation for its
anti-money-laundering program, according to the company's annual
securities filing.
The bank disclosed Thursday that it is under investigation by
the New York District Attorney's Office, the Justice Department and
the Financial Crimes Enforcement Network of the Treasury Department
over "certain former check casher clients" of its commercial
banking business and over its anti-money-laundering program.
The bank's November filing with the Securities and Exchange
Commission said it had received subpoenas and requests for
testimony, but not that it was being investigated.
A Capital One spokeswoman said the bank used different words in
the filing to describe the same situation.
As previously disclosed, Capital One has also been the subject
of an open consent order with the Office of the Comptroller of the
Currency since July 2015 over regulatory deficiencies in its
anti-money-laundering program.
The OCC action has posed a hurdle for Capital One's planned
acquisition of the Cabela's Inc. credit-card portfolio , raising
the possibility another bank will snatch that deal away. That deal
was announced last year when Bass Pro Shops agreed to purchase
Cabela's. Capital One agreed to buy the credit-card business as
part of the deal.
On Capital One's earnings call last month, Chief Executive
Richard Fairbank said the bank didn't expect to receive regulatory
approval for the purchase before Oct. 3. That is when Cabela's and
Bass Pros Shops can walk away from the transaction. He added that
the bank wouldn't be able to refile its application for the deal
until after "we have completed our work under the AML consent
order."
Write to AnnaMaria Andriotis at annamaria.andriotis@wsj.com
(END) Dow Jones Newswires
February 23, 2017 22:18 ET (03:18 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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