News

AmEx pinched for money-laundering

August 6, 2007

CNN Money:American Express Co. has agreed to pay $65 million for failing to detect drug-related money transactions laundered through a subsidiary over several years, U.S. authorities said Aug. 6. American Express Bank International entered into a deferred prosecution agreement with the Department of Justice to resolve a charge that it failed to maintain an effective anti-money laundering program. The AEBI's anti-money laundering program "had serious and systemic deficiencies," the U.S. Federal Reserve said in a cease-desist order, citing findings from a Justice Department investigation. The Justice Department found instances of suspicious or illicit activity in drug-related money laundering transactions that moved through "Black Market Peso Exchange" wire transfers, which were part of an undercover law enforcement operation, according to the Fed's order.