: U.S. Treasury and the Fed fine Wells Fargo $98 mln for inadequate oversight of sanctions compliance
The Federal Reserve and the Treasury Department on Thursday fined Wells Fargo & Co. WFC a combined $97.8 million for “deficient oversight” that allowed the bank to allegedly violate U.S. sanction regulations. The Fed’s fine of $67.8 million — included in the $97.8 million total — is for “unsafe or unsound practices” related to historical inadequate oversight of sanctions compliance risk at its Wells Fargo Bank N.A. unit. The bank violated U.S. sanctions by providing a trade finance platform to an unnamed foreign bank, which used the platform to process $532 million in prohibited transactions between 2010 and 2015, according to a statement. The fine marks the latest of several enforcement actions against the bank, including a $1.93 trillion asset cap that was placed on it in 2018 by the Fed. Wells Fargo stock is down nearly 10% in 2023, compared to a 5% gain by the S&P 500 SPX .
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