Federal regulators have fined USAA Federal Savings Bank $140 million for willfully violating the Bank Secrecy Act, the U.S. Treasury Department’s Financial Crime Enforcement Network (FinCEN) said Friday.
FinCEN said the bank admitted that it “deliberately did not implement or maintain an anti-money laundering (AML) program that met the minimum requirements of the BSA from at least January 2016 to April 2021.”
USAA admitted that it did not report thousands of suspicious transactions made by customers, including the use of personal accounts for “obvious criminal activity.”
“Today’s actions signal that growth and compliance must go hand in hand, and the weaknesses of the AML (Anti-Money Laundering) program, especially the weaknesses identified by federal regulators, must be addressed promptly and effectively,” said Himauli Das, Acting Director FinCEN.
FinCEN says the bank will pay the US Treasury a total of $140 million. The total came from fines imposed by the Office of the Comptroller of the Currency and FinCEN, which amounted to $60 million and $80 million, respectively.
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USAA released the following statement to KSAT 12 News:
“This was due to the fact that we have not sufficiently strengthened the capabilities and experience required to meet the requirements of the BSA/AML. We are partnering with the OCC and will continue to do so.
“While the issues identified in these orders did not harm individual participants, we understand the importance of these requirements. Compliance is a top and immediate priority that is fundamental to providing our members with the highest level of service,” said USAA CEO Wayne Peacock. “USAA has already made progress in many critical areas by investing in new systems and training, increasing staff and experience, and improving our processes. And we have an unwavering commitment to the military community.”
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