BB&T Becomes Latest Bank to Deal with BSA Order

BB&T Corp. in Winston-Salem, N.C., has joined a growing list of banks that are dealing with consent orders tied to the Bank Secrecy Act.

The $223 billion-asset company disclosed in a regulatory filing Tuesday that the order, which came from the Federal Deposit Insurance Corp. and the North Carolina commissioner of banks, calls for "corrective actions and enhancements to address certain internal control deficiencies" with BSA and anti-money-laundering compliance.

No criminal activity was identified and no financial penalty was levied, the filing said. BB&T, however, said it expects to enter into a similar order with the Federal Reserve in the near future.

BB&T said it had already taken significant steps to improve its compliance, making additional investment into processes and system upgrades and hiring "a highly experienced" professional to oversee its efforts. The company added that it continues to emphasize education, training and the importance of compliance for all of its associates.

Still, the order will cut into BB&T's ability to expand, John Pancari, an analyst at Evercore Partners, wrote in a note to clients.

Pancari said BB&T's management confirmed that because of the order the company cannot complete a whole-bank acquisition or pursue de novo expansion. "Management emphasized that timing of resolution is highly uncertain, but implied a minimum of one year," he added.