FCC Flash

On September 29, 2023, Shinhan Bank America (SHBA) was fined US$15 million by the Financial Crimes Enforcement Network (FinCEN) for willful violations of the Bank Secrecy Act (BSA) and its implementing regulations.

To read in detail, please click https://www.fcctimes.com/2023/09/29/shinhan-bank-america-hit-with-15-million-penalty-for-willful-bsa-breaches/

FinCEN appreciates the close collaboration with its partners at the Federal Deposit Insurance Corporation (FDIC) on this matter and extends its gratitude to the New York State Department of Financial Services (NYDFS).

According to the consent letter issued by FinCEN, between April 2016 and March 2021, SHBA admitted to willfully violating the BSA. They failed to establish and maintain an AML program adequately designed to prevent money laundering. Moreover, they did not promptly file Suspicious Activity Reports (SARs) with FinCEN, including those linked to tax evasion, public corruption, money laundering, and other financial crimes, resulting in delayed reporting of tens of millions of dollars in suspicious activities. In addition, inadequacies were found in transaction monitoring and governance.

Furthermore, SHBA has accepted the terms of this Consent Order, which include making a payment of US$10 million to the U.S. Department of the Treasury and US$5 million to the Federal Deposit Insurance Corporation (FDIC).