Regulators hit BB&T over anti-laundering deficiencies

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WASHINGTON — Federal and state regulators on Friday announced that BB&T has agreed to a consent order over weaknesses in its Bank Secrecy Act and anti-money-laundering program.

"The most recent inspection of BB&T conducted by the Federal Reserve Bank of Richmond ... identified significant deficiencies in BB&T’s firmwide compliance program with respect to compliance with the BSA/AML Requirements," regulators said in a consent order released Friday by the Federal Reserve.

BB&T's board of directors was ordered to submit a plan within 60 days that outlines how it will strengthen its program. The plan will have to include details on how the bank will fund its compliance infrastructure; ensure it complies with BSA/AML requirements; and the steps it will take to improve internal controls and reporting to the board.

In addition, the bank will have to submit within 60 days a broader plan for strengthening its BSA/AML compliance program. This plan will have to include, among other things, a review of BB&T's compliance risk assessment schedule and processes, its written policies and procedures and the duties of compliance personnel in each branch.

After the bank submits those plans, they will have to be approved by the Fed and North Carolina commissioner of banks. BB&T will then have 10 days to implement them.

The bank will also have to submit quarterly status reports for an indefinite amount of time.

In a statement, the bank responded: "BB&T has a long history of quickly addressing regulatory concerns, and we’ve already made significant enhancements to our BSA/AML program. We’re committed to working alongside our regulatory partners to implement the needed improvements as quickly as possible."

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