Capital One Financial in McLean, Va., has been hit with an enforcement action by federal regulators for deficiencies in anti-money laundering compliance that were connected to a former check-cashing business.
The Office of the Comptroller of the Currency placed the $311 billion-asset Capital One under the consent order on Friday.
"This matter emanates from prior banking relationships with certain check cashing service providers in the New York metro area, a business we made the decision to exit in 2014," a spokeswoman for Capital One said via email.
"We have worked diligently with our bank regulators since that time to ensure we address any concerns regarding our AML compliance processes," the spokeswoman said.
The matter concerned the check cashing group of Capital One's commercial banking business.
"We have made substantial progress in implementing the changes... [which] do not have a material impact on our financial results or operations," Capital One said in its 10-Q regulatory filing.
Earlier this year, Capital One was subpoenaed by the Justice Department and the Financial Crimes Enforcement Network for information on anti-money laundering compliance concerning "certain check casher clients" of its commercial banking business. New York's district attorney had subpoenaed Capital One for information on the same matter at an earlier date.
Separately, Capital One disclosed that it has received subpoenas from the Justice Department and New York's district attorney seeking information on its subprime auto-lending business and securitization activities. Capital One said it is cooperating with both subprime auto-lending investigations.