San Antonio

USAA ordered to pay $140 million related to anti‑money laundering regulations

The federal company stated USAA Federal Savings Bank admitted it failed to implement and keep an anti-money laundering program.

SAN ANTONIO — USAA Federal Savings Bank has been ordered to pay $140 million in civil money penalties related to the Bank Secrecy Act, in accordance to the Financial Crimes Enforcement Network (FinCEN).

The federal company stated USAA Federal Savings Bank admitted it failed to implement and keep an anti-money laundering program, which was a requirement beneath the Bank Secrecy Act. That occurred from at the least January 2016 by way of April 2021.

The San Antonio-based financial institution additionally admitted that it willfully failed to precisely and well timed report hundreds of suspicious monetary exercise by its clients, together with clients utilizing personal accounts for obvious prison exercise.

“As its customer base and revenue grew in recent years, USAA FSB willfully failed to ensure that its compliance program kept pace, resulting in millions of dollars in suspicious transactions flowing through the U.S. financial system without appropriate reporting,” stated FinCEN’s Acting Director Himamauli Das.

As far because the penalty of $140 million, $80 million was assessed by FinCEN  and $60 million was assessed by the Office of the Comptroller of the Currency for related violations.

KENS 5 reached out to the financial institution Friday, and USAA responded with this assertion: 

“While the problems recognized in these orders didn’t lead to any particular person member hurt, we perceive the significance of those necessities. Compliance is a prime and pressing precedence that’s elementary to offering our members with the best degree of service,” Wayne Peacock, the CEO of USAA stated. “USAA has already made progress in many critical areas by investing in new systems and training, enhancing staffing and expertise, and improving our processes. And we have an unwavering commitment to the military community.”

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