Regulators Let Bank Off Easy, U.S. Says
Wells Fargo should have been publicly cited for weak money-laundering safeguards, a report says, August 24, 2006
Wells Fargo & Co.'s safeguards for detecting illicit banking activities by terrorists, drug smugglers and other criminals were so weak that federal regulators should have publicly reprimanded the San Francisco-based bank, according to a Treasury Department report released Wednesday.
Instead, senior banking regulators met with Wells Fargo Chief Executive Richard Kovacevich, then overruled their own staff by letting Wells off with an informal enforcement action — sparing Wells the scrutiny and embarrassment suffered by other banks that have been forced to disclose that regulators faulted their oversight systems.
The Bank Secrecy Act requires financial institutions to tip off authorities to any suspicious activity, such as large cash deposits. Aggressive enforcement of the act has been a high priority for the Bush administration since the Sept. 11, 2001, terrorist attacks on the World Trade Center and the Pentagon.
Responding to the report Wednesday, Wells Fargo said in a statement that it had "always taken Bank Secrecy Act regulations, policies and compliance very seriously."
Do you suppose this is why Wells Fargo has so many security breeches?
Wells Fargo & Co.'s safeguards for detecting illicit banking activities by terrorists, drug smugglers and other criminals were so weak that federal regulators should have publicly reprimanded the San Francisco-based bank, according to a Treasury Department report released Wednesday.
Instead, senior banking regulators met with Wells Fargo Chief Executive Richard Kovacevich, then overruled their own staff by letting Wells off with an informal enforcement action — sparing Wells the scrutiny and embarrassment suffered by other banks that have been forced to disclose that regulators faulted their oversight systems.
The Bank Secrecy Act requires financial institutions to tip off authorities to any suspicious activity, such as large cash deposits. Aggressive enforcement of the act has been a high priority for the Bush administration since the Sept. 11, 2001, terrorist attacks on the World Trade Center and the Pentagon.
Responding to the report Wednesday, Wells Fargo said in a statement that it had "always taken Bank Secrecy Act regulations, policies and compliance very seriously."
Do you suppose this is why Wells Fargo has so many security breeches?
posted by fredom-of-speech-infringed | Thursday, September 07, 2006
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