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The Office of the Comptroller of the Currency imposed a $350 million civil penalty and cease-and-desist order on American Express National Bank over deficiencies in its Bank Secrecy Act and anti-money-laundering program. The Federal Reserve separately issued an enforcement action against American Express Company and American Express Travel Related Services Company. AmEx says it has been working to strengthen its controls and will continue cooperating with regulators and law enforcement.
The Office of the Comptroller of the Currency and the Federal Reserve issued enforcement actions against American Express entities on October 8, with the OCC imposing a $350 million civil penalty on American Express National Bank over deficiencies in its anti-money-laundering compliance program. The actions address regulators’ findings about the detection and reporting of suspicious activity and the implementation of controls intended to meet federal requirements.
The OCC said it issued a cease-and-desist order and the civil money penalty after finding that American Express National Bank failed to establish and maintain an adequate program under the Bank Secrecy Act and anti-money-laundering rules. The agency cited insufficient resources for the program, risk assessments that were not adequately tailored to the bank’s activities, and systemic breakdowns in suspicious-activity monitoring and reporting.
The Federal Reserve announced a separate enforcement action addressing the company’s failure to sufficiently detect and report activity related to money laundering and deficiencies in implementing its enterprise-wide AML program. Its cease-and-desist order names American Express Company and American Express Travel Related Services Company. The supplied regulator statements do not specify a separate Fed monetary penalty.
American Express said the regulators’ reviews had been disclosed previously. Chairman and CEO Stephen J. Squeri said the company has worked with regulators over the past several years to strengthen controls and with law enforcement to provide information about transactions in which people misused its products. He acknowledged that work remains, while the orders set out regulators’ formal findings and required remedial action.
Why AML Controls Drew Penalties
The actions put a substantial financial penalty alongside formal orders requiring American Express entities to address weaknesses in controls designed to identify and report suspected financial crime. For banks and payment businesses, these systems are part of the regulatory framework for monitoring transactions and sharing relevant information with authorities. The OCC said the shortcomings involved not just individual procedures but resources, risk assessment and monitoring and reporting processes.
The OCC’s penalty applies to American Express National Bank; the Fed action names the parent company and its travel-services subsidiary. That distinction matters: the announcements describe actions against different entities and should not be read as a single $350 million penalty imposed jointly by both regulators. The available source does not identify additional financial penalties or give a combined total beyond the OCC’s stated amount.
For customers, the announcements concern the company’s compliance systems rather than a stated change to card terms or services. The regulators’ findings do not, on the information provided, say that every transaction or account was implicated. They do signal that regulators found weaknesses significant enough to warrant formal enforcement and a large civil penalty.
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Regulators’ Actions and AmEx’s Response
The OCC supervises national banks and announced its action against American Express National Bank. Its findings, as summarized in the release, cover the bank’s BSA/AML program, including whether it had enough resources, whether its risk assessment reflected its business activities, and whether suspicious transactions were monitored and reported effectively.
The Federal Reserve’s action is directed at American Express Company and American Express Travel Related Services Company. Its stated concerns include detecting and reporting suspicious activity and how the company implemented its AML program across the enterprise. The two regulators’ announcements therefore address related compliance concerns across different parts of the American Express organization.
American Express said the regulatory reviews were previously disclosed. Squeri described the company’s efforts to strengthen controls and cooperate with law enforcement, while recognizing that the work is unfinished. The source material does not detail when the reviews began, provide a full account of earlier disclosures, or describe specific remediation deadlines.
“While we have made meaningful progress, we know there is more work to do.”
— Stephen J. Squeri, American Express chairman and CEO
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Details Still Missing From the Orders
The information available here does not provide the full text of either regulator’s order, so the precise corrective steps, milestones, reporting obligations and deadlines are not specified. It also does not explain how long each deficiency persisted, how many transactions or customers may have been affected, or whether regulators identified particular cases of money laundering tied to the findings.
The OCC’s $350 million penalty is confirmed in its announcement. The source does not state a separate Federal Reserve fine, and no additional penalty should be inferred from the Fed’s enforcement action. American Express’s statement describes progress and planned cooperation, but does not list completed fixes or establish when regulators will consider remediation sufficient.
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Remediation and Regulatory Oversight Ahead
American Express says it will continue working with regulators and law enforcement to strengthen its financial-crimes compliance program. The cease-and-desist orders make the companies’ response to the regulators’ findings the next central development, although the source material does not identify a public compliance timetable or a scheduled follow-up date.
Further information may come from the complete orders, subsequent company disclosures or updates from the OCC and Federal Reserve. Until then, the confirmed record is limited to the agencies’ stated findings and actions, the OCC’s penalty, and AmEx’s commitment to continue remediation and cooperation.
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Key Questions
How much is the OCC’s penalty against American Express?
The OCC imposed a $350 million civil money penalty on American Express National Bank, along with a cease-and-desist order.
What deficiencies did the OCC identify?
The OCC cited insufficient resources for the bank’s BSA/AML program, risk assessments not adequately tailored to its business activities, and systemic breakdowns in suspicious-activity monitoring and reporting.
Which American Express entities are named in the Federal Reserve action?
The Fed’s cease-and-desist order names American Express Company and American Express Travel Related Services Company. The OCC’s $350 million penalty applies to American Express National Bank.
Did the Federal Reserve announce another fine?
The provided announcement describes a Federal Reserve enforcement action and cease-and-desist order but does not specify a separate Fed monetary penalty.
What has American Express said it will do?
CEO Stephen J. Squeri said the company will continue cooperating with regulators and law enforcement and working to strengthen its financial-crimes compliance program. The announcement does not give a public deadline for completing that work.
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