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The moves are part of a recent trend of banks exiting businesses that they believe have fallen out of favor with regulators.
April 16 -
Regulators want banks to police MSBs for illicit activity, but they do not view all such businesses as high-risk, said David Cohen, Treasury's top AML official.
January 13 -
The Treasury Department and its anti-money laundering unit find themselves on the defensive as bankers say they're cutting ties with entire business sectors as a result of blunt enforcement efforts.
November 10 -
The Financial Crimes Enforcement Network, a division of the Treasury Department, has assessed a $1 million civil penalty against MoneyGram International's former chief compliance officer.
December 18 -
Banks are facing enhanced scrutiny from examiners, causing them to sever ties with businesses they view as high-risk, but regulators are also pressuring them not to close those accounts, fearing financial disenfranchisement.
November 17 -
More U.S. banks are dropping Somali money transmitters as regulators crack down on the risk of terrorist financing at remittance houses serving the war-torn East African nation. Banks are familiar with regulatory tight spots, but rarely do their responses have life and death consequences, as is the case here.
August 29
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.
The $309 billion-asset bank received the inquiries early this year from the Justice and Treasury departments, including the latter's Financial Crimes Enforcement Network, Capital One said Tuesday in its
They are similar to
Capital One said it is cooperating with all the agencies in the investigation. A call and an email placed late Tuesday with a company spokeswoman were not immediately returned.
The disclosures come at a time when banks
The situation seems unlikely to change. Regulators have insisted that banks have been
Capital One said nearly a year ago that it would
Before Capital One decided to stop doing business with check cashers, the McLean, Va., firm was serving about half of the 150 licensed check cashing companies in New York state, the Financial Service Centers of America said at the time of the announcement.
Another big player in credit cards has tangled with regulators over anti-laundering issues recently. The banking unit of Discover Financial Services, based in Greenwood, Del.,
Discover said last month that its regulatory and compliance costs will rise in 2015.
"Across the industry, there are much more significant compliance expenses, driven by all the regulators," Discover CEO David Nelms