Wells Fargo Pledges to Fix AML Program After OCC Agreement

Core Viewpoint - Wells Fargo is facing ongoing regulatory scrutiny from the Office of the Comptroller of the Currency (OCC) due to deficiencies in its anti-money laundering (AML) and financial crimes risk management practices [1][2]. Regulatory Agreement - The OCC has signed a formal agreement with Wells Fargo to address identified deficiencies in its AML internal controls, including issues related to suspicious activity reporting, customer due diligence, and customer identification programs [2][3]. - The agreement outlines a detailed plan for Wells Fargo to remedy these deficiencies, emphasizing the need for enhancements in various aspects of their AML program [3]. Compliance Commitments - Wells Fargo has acknowledged the necessity of implementing the required changes and is committed to addressing the issues with urgency [4]. - The agreement mandates the establishment of a Compliance Committee to oversee compliance with its terms and requires the bank to submit an action plan detailing remedial measures within 120 days [7]. Risk Management Enhancements - The action plan must cover areas such as front-line risk management, independent risk management, independent testing, customer identification, and suspicious activity identification [7]. - Wells Fargo is also required to enhance its risk assessments, establish a data integrity program, and improve its overall compliance program [8]. Restrictions on Growth - The agreement restricts Wells Fargo from expanding into new products, services, or markets without prior OCC approval until the identified deficiencies are adequately addressed [8]. - The existence of this new agreement may complicate Wells Fargo's efforts to lift the asset cap imposed by the Federal Reserve in 2018 due to previous consumer abuses [5][6].