U.S. regulators fined American Express $350 million after determining its anti-money laundering programs were insufficient, potentially missing billions in suspicious activity.
U.S. bank regulators fined American Express US$350 million on Thursday after determining the lender’s programs to identify potential money laundering were insufficient. The U.S. Office of the Comptroller of the Currency (OCC) and the Federal Reserve announced the enforcement action, stating that the company, primarily through its national bank, failed to maintain a sufficient anti-money laundering compliance program.
The OCC stated that “systemic breakdowns” in monitoring and reporting meant the lender failed to identify, evaluate and sufficiently report roughly US$13 billion in suspicious activity over the past decade. According to the OCC, the bank processed approximately billions in suspected trade-based money laundering activity between June 2014 and May 2025, including suspicious card charges and repayments.
Regulators identified several specific deficiencies in the bank's operations:
Comptroller of the Currency Jonathan Gould said in a statement, “The OCC expects banks of American Express’s size and complexity to devote sufficient resources to ensure compliance with laws and regulations designed to detect and prevent money laundering, which are critical to both economic and national security.”
American Express did not admit or deny the regulators’ findings. In a statement, CEO Stephen Squeri said the bank is “fully committed” to addressing the concerns and continuing to improve its compliance. “While we have made meaningful progress, we know there is more work to do,” Squeri said.
The company noted that it identified weaknesses in its Financial Crimes Compliance program through internal and external reviews. American Express stated it investigated transactions processed over its network by individuals misusing products for purchases of goods and services, reported that information to law enforcement, and took other appropriate action.
Regarding the financial impact, Squeri said the penalty and the costs of meeting the regulators’ requirements are not expected to affect guidance for 2026 and 2027. The company added that a portion of the $350 million penalty had already been reserved in prior periods. The consent orders do not impose a cap on the company's assets.
Following the announcement, American Express shares fell 2% in extended trading on Thursday. The stock is down more than 16% since the beginning of the year. The OCC noted that some of the transactions involved accounts associated with bank insiders, though the order did not identify the individuals involved or specify their roles.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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