Federal Reserve Penalizes American Express for Money Laundering Failures

The Federal Reserve Board announced an enforcement action on Thursday against American Express Company following the discovery of failures in detecting and reporting suspicious activity related to money laundering. Regulators identified significant deficiencies in the implementation of the company's enterprise-wide anti-money laundering program, with specific failures occurring within its subsidiary national bank.

Simultaneously, the Office of the Comptroller of the Currency, acting as the primary federal regulator for the subsidiary, issued a separate enforcement action against American Express National Bank. These coordinated regulatory moves aim to force the company into full compliance with United States laws and regulations regarding financial oversight and the reporting of illicit activity.