On September 29, Shinhan Bank America, a New York-based subsidiary of a Korean bank, faced concurrent enforcement actions from some top United States regulatory authorities. The Financial Crimes Enforcement Network (FinCEN), Federal Deposit Insurance Corporation (FDIC), and the New York Department of Financial Services (NYDFS) all initiated penalties against the bank.
Collected penalties against the bank amount to a total of $25 million, a result of the bank’s failure to develop and implement an effective anti-money laundering (AML) program in accordance with the Bank Secrecy Act (BSA), as detailed in the enforcement actions against the bank.
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The Financial Crimes Enforcement Network, also known as FinCEN, is an agency of the United States Department of Treasury. FinCEN safeguards financial systems from illicit use, combats money laundering, and promotes national security through the collection, analysis, and dissemination of financial intelligence.
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Similarly, the Federal Deposit Insurance Corporation, or FDIC, is an independent agency of the United States government. The FDIC works to preserve and promote public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for up to $250,000.
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The New York Department of Financial Services, NYDFS, supervises and regulates all insurance companies, banks, and financial service providers doing business in New York. It does this by enforcing laws fairly and vigorously to protect consumers and markets.
These simultaneous enforcement actions against Shinhan Bank America serve as a stark reminder to all financial institutions of their duties under the Bank Secrecy Act to develop, implement, and effectively maintain an appropriate AML program.