FinCEN Fines Former CCO For Maintaining Ineffective AML Program

Anti-Money Laundering FinCEN Bank Secrecy Act Enforcement

Recently, FinCEN announced a $1 million civil money penalty against the former Chief Compliance Officer (CCO) of a large financial services company for allegedly violating the Bank Secrecy Act (BSA) and its implementing regulations. In its complaint, FinCEN alleges that the CCO, from 2003 through 2008, failed to implement and maintain an effective AML program and file timely Suspicious Activity Reports as required by the BSA. As a result, the company’s money transfer system was used to carry out fraudulent activities causing customers to incur substantial losses. In addition to the penalty, FinCEN is seeking to prohibit the former CCO from participating, directly or indirectly, in the affairs of any financial institution.