Shinhan Bank enforcements a lesson in not prioritizing compliance

Shinhan Bank

The recent $25 million in combined penalties levied against South Korean-based Shinhan Bank by three U.S. regulators was the culmination of the bank’s failure over an eight-year period to timely correct deficiencies with its anti-money laundering (AML) and Bank Secrecy Act (BSA) processes.

Shinhan Bank America was fined $15 million by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), $10 million by the New York State Department of Financial Services (NYDFS), and $5 million by the Federal Deposit Insurance Corporation (FDIC) for violations dating back to 2015, the agencies said last week. The total amount to be paid was $25 million.

Shinhan Bank’s failure to remediate the issues constituted “willful violations” of the BSA, FinCEN said.

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