U.S. Bank, JPMorgan freed from BSA enforcement actions

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U.S. Bancorp has been freed from the last of two regulatory actions tied to anti-money laundering compliance, including its dealings with a payday lender who was later convicted of fraud.

The Federal Reserve Board on Dec. 5 terminated a 2018 cease-and-desist order that required the Minneapolis company to upgrade its systems for detecting money laundering. A separate regulatory order from the Office of the Comptroller of the Currency, related to the same matter, was lifted in November 2018.

U.S. Bancorp is “pleased with the Federal Reserve’s announcement today and with the current state of our anti-money laundering compliance program,” Cheryl Leamon, a company spokeswoman, said in an emailed statement.

In February 2018, U.S. Bancorp agreed to pay $613 million in penalties and to enter into a deferred prosecution agreement with the Justice Department over its Bank Secrecy Act compliance. The company was criticized for the management of its relationship with customer Scott Tucker, a payday lender who was convicted of racketeering and other charges.

Also on Dec. 5, the Fed terminated a cease-and-desist order with JPMorgan Chase related to BSA/AML compliance at the company’s various subsidiaries. The 2013 enforcement action was issued on Jan. 14, 2013, the same day that the Fed filed a separate cease-and-desist order against JPMorgan for the so-called London Whale scandal.

Additionally, the Fed terminated a 2012 written agreement with the $625 million-asset Spirit BankCorp in Bristow, Okla. The agreement had restricted Spirit’s ability to pay dividends to shareholders and required it to develop a plan to improve its capital ratios and take other actions. The Fed lifted the order on Dec. 5.

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