U.S. Regulators Signal Intensified Focus on Anti-Money Laundering Compliance for Banks

U.S. financial regulators issued a strong warning to banks on Wednesday, signaling an increased emphasis on enforcing anti-money laundering (AML) and know-your-customer (KYC) compliance protocols. This announcement, delivered at a New York gathering of financial industry experts, follows the recent U.S. election and arrives amid discussions on potential regulatory shifts under President-elect Donald Trump’s administration.

“Preventing criminal misuse of the financial system remains a priority, and further enforcement actions should be expected,” said Whitney Case, associate director of the Treasury Department’s Financial Crimes Enforcement Network. Case underscored the ongoing importance of compliance with the Bank Secrecy Act (BSA), as regulators focus on maintaining a robust anti-money laundering framework.

In recent months, U.S. regulators have intensified scrutiny of banks’ risk management protocols, with a particular focus on detecting AML weaknesses that threaten operational integrity. A recent example was TD Bank’s record $3 billion fine in October for violations of U.S. AML laws, accompanied by an asset cap to restrict certain operations until compliance improves.

Greg Coleman, senior deputy comptroller for large banks at the Office of the Comptroller of the Currency (OCC), noted that TD’s case underscores the need for robust AML monitoring across the banking sector. The OCC recently imposed restrictions on Wells Fargo’s ability to expand into high-risk areas after identifying AML-related deficiencies. In a separate statement, Bank of America acknowledged it may also face regulatory scrutiny regarding its anti-money laundering and sanctions programs.

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