U.S. Treasury and the Fed fantastic Wells Fargo $98 mln for insufficient oversight of sanctions compliance


The Federal Reserve and the U.S. Treasury Department on Thursday fined Wells Fargo & Co. a blended $97.8 million for “deficient oversight” that authorized the financial institution to allegedly violate U.S. sanctions restrictions, as the newest in a sequence of enforcement steps versus the megabank.

The bank’s Wells Fargo Bank N.A. unit violated U.S. sanctions by providing a trade finance platform to an unnamed foreign lender, which utilized the platform to method $532 million in prohibited transactions among 2010 and 2015, in accordance to a assertion from the Fed.

“Wells Fargo is pleased to take care of this legacy issue involving carry out that ended in 2015, which we voluntarily self-documented and totally cooperated with the Workplace of Foreign Property Command and the Federal Reserve Board to address,” explained an emailed statement from a Wells Fargo spokesperson.

Wells Fargo & Co.
inventory fell 1.6% on Thursday afternoon, typically unchanged from its stage prior to the enforcement action.

The Fed’s great of $67.8 million — incorporated in the $97.8 million complete — is for “unsafe or unsound practices” similar to historical inadequate oversight of sanctions compliance risk Wells Fargo Financial institution N.A.

The high-quality marks the hottest of many enforcement steps from the bank, including a $1.93 trillion asset cap that was positioned on it in 2018 by the Fed. Wells Fargo stock is down approximately 10% in 2023, in comparison to a 5% acquire by the S&P 500


Source hyperlink

Leave a Comment