US regulators have fined American Express $350 million after uncovering shortcomings in its systems for detecting suspicious financial transactions, raising concerns about billions of dollars in potentially unreported activity.
The penalty followed findings by US banking authorities that the company’s procedures for identifying and reporting suspected money laundering were insufficient, potentially leaving about $13 billion in suspicious transactions undetected over the past decade.
The enforcement action was announced on Thursday by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve. The regulators said American Express, particularly its national bank, had failed to establish and maintain an effective anti-money laundering compliance programme.
Their investigation revealed several shortcomings, including inadequate staffing, limited employee experience, insufficient training and weaknesses in internal controls.
American Express neither admitted nor denied the regulators’ findings.
According to the OCC, extensive flaws in the bank’s monitoring and reporting systems hindered its ability to identify, evaluate and report approximately $13 billion in suspicious transactions over a 10-year period.
Comptroller of the Currency Jonathan Gould said financial institutions operating at American Express’s scale and level of complexity must dedicate sufficient resources to meeting anti-money laundering obligations.
He emphasised that complying with regulations aimed at detecting and preventing illicit financial activities is vital to safeguarding the economy and national security.
The OCC also found that American Express placed greater emphasis on risks linked to its relatively smaller deposit products while failing to adequately address risks associated with its significantly larger credit card business.
The regulator further identified deficiencies in the bank’s procedures for confirming customers’ identities and carrying out due diligence checks.
In response to the enforcement action, American Express Chief Executive Officer Stephen Squeri said the company remained committed to addressing the regulators’ concerns and improving its compliance systems.
Squeri acknowledged that the bank had made significant progress in strengthening its controls but said further efforts were needed to resolve the identified issues.
He added that the $350 million penalty, together with the costs of implementing the regulators’ requirements, was not expected to affect the company’s financial outlook for 2026 and 2027.
Goodness Anunobi
Follow us on:
