Fed terminates orders with JPMorgan Chase & Co., U.S. Bancorp that cited BSA deficiencies

Cease-and-desist orders issued in 2013 and 2018 against JPMorgan Chase & Co. (New York, N.Y.), and U.S. Bancorp and USB Americas Holdings Company, both of Minneapolis, Minn., were terminated by the Federal Reserve Board Dec. 5, the Fed said in a release Thursday.

The orders show the Fed found deficiencies in both firms’ Bank Secrecy Act (BSA) compliance and that U.S. Bancorp was also assessed a civil money penalty of $15 million in 2018.

The 2018 order noted that bank holding company U.S. Bancorp, among other things, lacked adequate risk management and compliance policies and procedures to ensure that activities conducted at U.S. Bank N.A. and USB Americas Holdings Company (a subsidiary of the bank) complied with BSA/anti-money laundering (AML) requirements and regulations of the Office of Foreign Asset Control and that they were timely reported in response to inquiries by the Federal Reserve Bank of Minneapolis. (It also referenced U.S. Bank’s previous consent order with the Office of the Comptroller of the Currency and settlements with the Financial Crimes Enforcement Network and the Department of Justice.)

The Fed on Dec. 5 also terminated a 2012 written agreement with Spirit BankCorp, Inc., Bristow, Okla., a bank holding company that owns and controls SpiritBank, Tulsa, Okla.

Federal Reserve Board announces termination of enforcement actions with JPMorgan Chase & Co., Spirit BankCorp, Inc., U.S. Bancorp, and USB Americas Holdings Company

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