The Financial Crimes Enforcement Network has fined Banco de Chile $3 million for failing to implement a sufficient anti-money laundering program, and failing to follow recent USA Patriot Act requirements that banks monitor politically exposed persons.
In a 10-page agreement with the bank, Fincen said Banco de Chile "failed to designate a person, or persons, to adequately ensure compliance with the Bank Secrecy Act."
The agency said the company failed to detect suspicious activity from a "prominent Chilean politically exposed person" dating back to November 1997.
In February the Federal Reserve Board and Office of the Comptroller of the Currency issued separate cease-and-desist orders against Banco de Chile for violating the Bank Secrecy Act. The OCC said the bank improperly opened and maintained accounts for the former Chilean dictator Augusto Pinochet.
The bank, based in Santiago, has branches in New York and Miami.
Banco de Chile officials have agreed to pay the fine, though they did not admit or deny wrongdoing in the case, Fincen said.
