Virginia's Capital One fined $390 million for violating US anti-money laundering law



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Virginia's Capital One fined $390 million for violating US anti-money laundering law

Capital One Financial Corp, the McLean, Virginia-headquartered American bank holding primarily focused on credit cards, auto loans, savings accounts and banking, had been met with a fine of $390 million in punitive measures due to its involvement in alleged violation of Bank Secrecy Act, an American anti-money laundering law, a Treasury Department Bureau had unveiled in a statement earlier on Friday.

In point of fact, according to the statement issued earlier in the day by the Treasury Department’s Financial Crimes Enforcement Network, Capital One, the Virginia-based American credit card provider, had acknowledged its wrongdoings on wilful and negligent breach of Bank Secrecy Act, while the American bank holding having had 48,800 employees to-date had also admitted that it had botched to implement an effective program what in effect could have safe-guarded the company against potential money laundering incidents.

Capital One admits it fails to report thousands of suspicious transactions

On top of that, the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) had also been quoted saying in the statement that the McLean-headquartered financial services company had admitted that it had failed to file “thousands of suspicious activities” alongside “thousands of Currency Transaction Reports” related to one of its business arms called as Check Cashing Group, while the potential breaches of US money laundering acts in Capital One Financial Corp, had taken place between 2008 and 2014, resulting in millions of dollars in suspicious transactions which went unreported in an accurate and timely manner, said the FinCEN.

While a $390 million in punitive measures would likely to insulate the financial services provider from lawsuits related to US Bank Secrecy Act, addressing to a swathe of suspicious transactions in Capital One that went unreported more than half a decade, FinCEN Director Kenneth Blanco said in a statement late in the day, “The failures outlined in this enforcement action are egregious”.

Shares’ prices of NYSE-listed Capital One wrapped up the day down by 1.63 per cent to $112.53 after plunging more than 2 per cent in pre-market trading followed by the reveal of Treasury Department announcement.