(Reuters) – Credit card company Capital One Financial Corp was fined $ 390 million for engaging in what the U.S. government called deliberate and negligent violations of the Bank Secrecy Act, a money laundering law, said a Treasury Department office on Friday.
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) said in a statement that Capital One admitted to have intentionally failed to implement and maintain an effective money laundering protection program, as required by law. (bit.ly/3qmXFji)
FinCEN said the financial services company admitted that it was unable to file “thousands of reports of suspicious activity” and “thousands of reports of monetary transactions” with respect to a business unit known as the Check Discount Group.
“The flaws described in this inspection action are striking,” said FinCEN director Kenneth Blanco in a statement.
The breaches occurred from at least 2008 to 2014 and caused millions of dollars in suspicious transactions to not be reported in a timely and accurate manner, added FinCEN.
Reporting by Arundhati Sarkar in Bengaluru; Will Dunham edition