American Express Fined $350 Million Over AML Failures
U.S. regulators fined American Express $350 million for systemic anti-money laundering compliance failures, which allowed roughly $13 billion in suspicious transactions to go unreported over a decade.
American Express has been fined $350 million by U.S. banking regulators for widespread failures in its anti-money laundering safeguards. The Office of the Comptroller of the Currency and the Federal Reserve issued the penalty and enforcement actions on Thursday, citing breakdowns that allowed about $13 billion in suspected illicit activity to flow undetected over the past ten years.
The OCC levied a $350 million civil money penalty against American Express National Bank. The Federal Reserve issued a separate cease-and-desist order against the parent company, American Express Company, and its travel-related services subsidiary. The regulators found systemic deficiencies in how the company's anti-money laundering program was implemented, particularly at the bank.
Scope of the Compliance Failures
The failures spanned from June 2014 through May 2025. During this period, the bank processed billions in suspicious card charges and repayments. Some transactions involved accounts linked to bank insiders, though the order did not name individuals.
The OCC said the bank's risk assessments were flawed. They focused too narrowly on its small deposit-taking operations while underweighting the much larger credit and charge card businesses that form its core revenue. Customer identification procedures and internal controls were also deficient.
Comptroller of the Currency Jonathan Gould stated the failures deprived law enforcement of critical information. The OCC expects banks of American Express's size and complexity to devote sufficient resources to ensure compliance with laws and regulations designed to detect and prevent money laundering, he said.
The $13 Billion in Suspicious Activity
The $13 billion in unreported activity involved suspected trade-based money laundering. This method disguises criminal proceeds by moving value through trade transactions. The aim is to move money, not goods.
The OCC's order detailed that the bank experienced systemic breakdowns in its suspicious activity monitoring and reporting processes. This led to a failure to timely identify, evaluate, and report the massive volume of transactions.
American Express agreed to the consent orders without admitting or denying the findings. The enforcement action did not include an asset cap or restrictions on the company's growth.
Financial and Market Impact
The company stated a portion of the penalty had already been reserved in prior accounting periods. Therefore, the resolution will not alter its full-year 2026 financial guidance. Costs for ongoing remediation are also not expected to affect its 2027 outlook.
In a statement, American Express CEO Stephen Squeri said the company has been working with regulators to strengthen controls. "While we have made meaningful progress, we know there is more work to do," Squeri said. The company's stock declined almost 2% in after-hours trading following the announcement.
The orders require American Express to overhaul its compliance program. This includes addressing inadequate staffing, insufficient expertise, and weak employee training that allowed the problems to persist.
