• 315 days Will The ECB Continue To Hike Rates?
  • 315 days Forbes: Aramco Remains Largest Company In The Middle East
  • 317 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 717 days Could Crypto Overtake Traditional Investment?
  • 721 days Americans Still Quitting Jobs At Record Pace
  • 723 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 726 days Is The Dollar Too Strong?
  • 727 days Big Tech Disappoints Investors on Earnings Calls
  • 728 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 729 days China Is Quietly Trying To Distance Itself From Russia
  • 730 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 734 days Crypto Investors Won Big In 2021
  • 734 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 735 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 737 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 737 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 741 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 741 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 742 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 744 days Are NFTs About To Take Over Gaming?
  1. Home
  2. News
  3. Breaking News

Capital One Fined Again For Money-Laundering Failure

Money Laundering

Capital One, the bank lately dominating the celebrity-featured advertising space in this industry, and claiming to have “reimagined” banking, has now been fined by the authorities for ‘willful’ anti-money-laundering failures--for the second time in six months. 

The Treasury Department's Financial Crimes Enforcement Network (FinCEN) fined America’s fifth-largest credit card issuer $390 million for engaging in willful and negligent violations of the Bank Secrecy Act, an anti-money laundering law.

 FinCEN said in a statement that Capital One admitted that it failed to file "thousands of suspicious activity reports" and "thousands of Currency Transaction Reports" with respect to a business unit known as the Check Cashing Group 

“The violations occurred from at least 2008 through 2014 and caused millions of dollars in suspicious transactions to go unreported in a timely and accurate manner,” FinCEN added. 

Capital One acquired the check-cashing group when it bought New York-based North Fork Bank in 2006 for $14.6 billion and shut it down 8 years later.  

Capital One admitted that it did not file any reports of suspicious activity in connection with Domenick Pucillo, who owned numerous check-cashing businesses in the New York area but was also a convicted member of the Genoese organized crime family.

FinCEN said that despite being informed about Pucillo’s association with criminal activity in 2013, the bank continued to process over 20,000 transactions valued at approximately $160 million.

Still, this wasn’t Capital One’s lone case of wrongdoing, nor is this bank the only offender. 

Last August, the bank was fined $80 million by the U.S. Treasury Department for careless network security practices after a lone hacker accessed the personal data of the bank’s more than 100 million customers. The incident is still the biggest data breach ever in the financial services sector.

A 33-year-old software engineer in Seattle, Paige Thompson, hacked into a server holding customer information for Capital One and gained access to 140,000 Social Security numbers, 1 million Canadian Social Insurance numbers and 80,000 bank account numbers.

Even though the Social Security numbers were not affected, the breach did include names, addresses, ZIP codes, phone numbers, email addresses and birthdates of all those who applied for a credit card from the US bank between 2005 through 2019.

Thompson, who pleaded not guilty and is still pending trial, previously worked for Amazon Web Services, which hosted the Capital One database.

In 2018, Bank of America was fined $42 million for misleading its customers into thinking that their stock trades were being done in-house when in reality they were being redirected to third parties.

But it’s also not the first time Bank of America has been fined for violations. Since the 2008 financial crisis, it’s paid $76 billion in fines.

A few years ago, America’s fourth largest bank, Wells Fargo, was fined billions of dollars by the U.S. trade watchdog for charging overdraft fees on millions of unauthorized customer accounts.

In total, banks have been fined $243 billion since the financial crisis, according to a list compiled in 2018 by Keefe, Bruyette and Woods. JPMorgan Chase features second on the list, with nearly $44 billion in fines.

By Michael Kern for Safehaven.com 

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment