U.S. Bancorp Announces Resolution Finalizing Legacy BSA / AML Matters
February 15 2018 - 9:54AM
Business Wire
U.S. Bancorp (NYSE: USB), parent company of U.S. Bank, announced
today that it has resolved previously disclosed matters related to
its Bank Secrecy Act (BSA) and Anti-Money Laundering (AML)
compliance programs with the U.S. Attorney’s Office for the
Southern District of New York, the Office of the Comptroller of the
Currency (OCC), the Federal Reserve Board and the Financial Crimes
Enforcement Network (FinCEN).
Under the resolution, the Company will pay a total of $613
million, reflecting the penalties assessed by each agency. The
company has fully reserved for this resolution and, accordingly,
there is no further financial impact.
“Today’s resolution finalizes legacy matters involving our AML
compliance program,” said Andy Cecere, President and CEO, U.S.
Bank. “We regret and have accepted responsibility for the past
deficiencies in our AML program. Our culture of ethics and
integrity demands that we do better. One of U.S. Bank’s key
priorities is to maintain an exceptional AML program and we are
confident in the strength of the program we have in place
today.”
Cecere added: “We have worked diligently over the past several
years to make significant investments to improve and strengthen our
AML controls, processes and staff, which includes our efforts under
a 2015 OCC consent order. U.S. Bank embraces the highest standards
of integrity, risk management and compliance and remains committed
to improving our controls and processes across the enterprise to
protect all of our stakeholders.”
U.S. Bank’s improved AML program includes:
- New leadership team running the Bank’s
AML program since 2014 – many of whom are recognized as leaders in
the industry and come from law enforcement backgrounds;
- A more transparent and frequent AML
reporting and escalation process to the Board and executive
management;
- A centralized, independent,
enterprise-wide financial crimes compliance function;
- Improved AML controls and training for
all customer-facing employees;
- Expanded transaction monitoring to
identify potentially suspicious activity;
- AML compliance staff that has increased
significantly; and
- Improved risk identification,
oversight, and reporting functions.
About U.S. Bank
U.S. Bancorp, with 74,000 employees and $462 billion in assets
as of Dec. 31, 2017, is the parent company of U.S. Bank, the
fifth-largest bank in the United States. The Minneapolis-based bank
blends its branch and ATM network with mobile and online tools that
allow customers to bank how, when and where they prefer. U.S. Bank
is committed to serving its millions of retail, small business,
wealth management, payments, commercial, wholesale and investment
services customers across the country and around the world as a
trusted financial partner. In 2017, U.S. Bank contributed more than
$58 million to nonprofit organizations across the country through
the U.S. Bank Foundation and corporate contributions. Additionally,
employees contributed more than 188,000 volunteer hours through our
Community Possible corporate responsibility platform. Visit U.S.
Bank online or follow on social media to stay
up to date with company news.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release regarding U.S.
Bancorp's business which are not historical facts are
"forward-looking statements" that involve risks and uncertainties.
For a discussion of such risks and uncertainties, which could cause
actual results to differ from those contained in the
forward-looking statements, see "Risk Factors" in the Company's
Annual Report or Form 10-K for the most recently ended fiscal
year.
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U.S. BancorpMedia:Dana E.
Ripley, 612-303-3167orInvestors/Analysts:Jen Thompson,
612-303-0778
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