Wells Fargo Faces New Regulatory Action Over AML Deficiencies

The OCC mandates comprehensive corrective actions as Wells Fargo struggles with ongoing compliance issues.

The Office of the Comptroller of the Currency (OCC) identified deficiencies in Wells Fargo's anti-money laundering (AML) and financial crimes risk management practices.
The agreement requires Wells Fargo to enhance its internal controls, including suspicious activity reporting, customer due diligence, and sanctions risk management.
Wells Fargo must obtain OCC approval before expanding into high-risk areas and establish a compliance committee to oversee adherence to the new requirements.
The bank's stock fell approximately 4% following the announcement, reflecting investor concerns over the impact on Wells Fargo's growth and regulatory outlook.
Despite recent progress, this new enforcement action may delay the removal of the Federal Reserve's asset cap imposed on Wells Fargo since 2018.