Re: Stiff Fines Prompt Amex to Bolster Money-Laundering Vigilance

["Dennis Henderson" <hendomatic () gmail com>]

On 8/7/07, Paul Ferguson <fergdawg () netzero net> wrote:
> -----BEGIN PGP SIGNED MESSAGE-----
> Hash: SHA1
>
> Via eWeek.
>
> [snip]
>
> American Express Bank International learned an expensive lesson when it
> agreed on Aug. 6 to pay a stiff penalty to the federal government after
> admitting that it failed to install and maintain anti-money-laundering
> software at its Miami office.
>
> The bank, which has about $1 billion in assets, must fork over a whopping
> $65 million, including $55 million in restitution and $10 million in
> penalties to the Department of the Treasury, as a result of negligence in
> its banking and compliance practices.
>
> A criminal information affidavit filed in U.S. District Court in Miami
> charged the bank with a single count of failing to maintain an effective
> anti-money-laundering program, and Amex decided not to fight the charge
> and
> to take the fine instead.
>
> The investigation raises obvious questions about why the bank's executives
> failed to address the money-laundering problems earlier. The
> transgressions
> apparently had been happening for several years, according to the federal
> affidavit.



You can buy a triple wide crapload of a AML infrastructure for 1/10 of that
fine....

Smells....

:)

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