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Capital One has received requests for information from federal regulators about its anti-money-laundering program and check casher clients, as authorities lean on banks to do a more thorough job policing their customers and their customers' customers.
February 24 -
The moves are part of a recent trend of banks exiting businesses that they believe have fallen out of favor with regulators.
April 16 -
In the wake of a report that the Financial Crimes Enforcement Network has identified more than 50 credit unions at risk of serving as a conduit for money laundering activities, the CU trades and regulators alike were scrambling to respond to what the NCUA suggested could be a "regulatory blind spot."
June 4
Capital One Financial in McLean, Va., has been hit with an enforcement action by federal regulators for deficiencies in anti-money laundering compliance that were connected to a former check-cashing business.
The Office of the Comptroller of the Currency placed the $311 billion-asset Capital One under the consent order on Friday.
"This matter emanates from prior banking relationships with certain check cashing service providers in the New York metro area, a business we made the decision to exit in 2014," a spokeswoman for Capital One said via email.
"We have worked diligently with our bank regulators since that time to ensure we address any concerns regarding our AML compliance processes," the spokeswoman said.
The matter concerned the check cashing group of Capital One's commercial banking business.
"We have made substantial progress in implementing the changes... [which] do not have a material impact on our financial results or operations," Capital One said in its 10-Q regulatory filing.
Earlier this year,
Separately, Capital One disclosed that it has received subpoenas from the Justice Department and New York's district attorney seeking information on its subprime auto-lending business and securitization activities. Capital One said it is cooperating with both subprime auto-lending investigations.
