Capital One Bank Fined $100 Million Over Money-Laundering Controls

Capital One Financial Corp. COF -1.69% has paid a $100 million fine over regulatory deficiencies in its anti-money-laundering program, federal regulators said Tuesday.

The Office of the Comptroller of the Currency levied the fine, saying the bank had several weaknesses in its compliance programs and risk assessment and failed to file some suspicious activity reports flagging potentially problematic transactions. The civil penalty came after the OCC initially cited deficiencies at Capital One in July 2015.

The bank has paid the fine to the U.S. Treasury, according to the OCC.

A Capital One spokeswoman said that the issue resulting in the fine was related to “prior banking relationships with certain check cashing service providers.” The bank said it left the business in 2014. The fine is part of resolving the consent order, she said.

“Since that time, we have worked diligently with our bank regulators to strengthen our processes and internal controls to ensure we address any concerns” regarding compliance with federal anti-money-laundering laws, the Capital One spokeswoman said.

https://www.wsj.com/articles/capital-one-fined-100-million-over-anti-money-laundering-program-1540318983