Capital One Paid $390M Penalty for AML Program Failures
What happened
Capital One was fined $390 million by FinCEN on January 15, 2021, for failing to maintain an effective anti-money-laundering program. The bank admitted it failed to file thousands of suspicious activity reports between 2008 and 2014 related to its Check Cashing Group, which was linked to organized crime, tax evasion, and fraud.
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Why it matters
The incident highlights the regulatory tension facing American banks, which face fines for missing suspicious transactions but also risk debanking lawsuits if they flag and close accounts. Capital One has also faced litigation regarding the closure of accounts linked to Eric Trump.
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Who's involved
- Capital OneBank subject to regulatory oversight and enforcement actions
- Consumer Financial Protection BureauAgency responsible for consumer protection in the financial sector
- Eric TrumpIndividual whose linked accounts Capital One closed, leading to litigation
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Rocket MortgageSpeculative
Rocket Mortgage could face increased compliance costs due to regulatory enforcement actions.
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The entities involved
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Capital One
bank holding company headquartered in McLean, Virginia
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Consumer Financial Protection Bureau
agency of the United States government responsible for consumer protection in the financial sector