WASHINGTON — The Federal Deposit Insurance Corporation (FDIC) today announced the assessment of a civil money penalty of $5 million against Shinhan Bank America, New York, New York, for violations of the Bank Secrecy Act (BSA) and its implementing anti-money laundering (AML) regulations and for failure to comply with the requirements of an FDIC-issued consent order, dated June 12, 2017.
In a concurrent action, the Financial Crimes Enforcement Network (FinCEN) assessed a civil money penalty of $15 million for violations of the BSA. The payment of $15 million to the United States Department of the Treasury will satisfy both FDIC and FinCEN assessments.
Separately, the New York State Department of Financial Services today announced the assessment of a civil money penalty of $10 million against Shinhan Bank America for violations of state AML laws and regulations.
In taking this action, the FDIC determined that the bank failed to implement an adequate AML Program over an extended period of time. The inadequate BSA/AML internal controls resulted in the Bank being unable to adequately identify and manage illicit financial activity risk to the institution.