Fed fines Wells Fargo $67.8M for inadequate sanctions risk oversight of subsidiary
Lax oversight helped Wells Fargo Bank provide a platform for facilitating $532 million in prohibited transactions
The Federal Reserve Board has announced that it has fined Wells Fargo & Co. (WFC) $67.8 million for the firm's unsafe or unsound practices relating to historical inadequate oversight of sanctions compliance risks at its subsidiary bank, Wells Fargo Bank.
Wells Fargo & Co.'s deficient oversight enabled the bank to violate U.S. sanctions regulations by providing a trade finance platform to a foreign bank that used the platform to process approximately $532 million in prohibited transactions between 2010 and 2015, a Fed report said.
The Board's action is being taken in conjunction with an action by the U.S. Department of the Treasury's Office of Foreign Assets Control, which is imposing a separate penalty on Wells Fargo Bank for these violations. The total penalty announced by both agencies is approximately $97.8 million.
