August 8, 2007

AMEX fined $65 million

American Express is probably one of the more famous banks in the world, yet their reputation has taken a little beating when they were fined $65 million for violating the US Governments anti laundering laws.

The US Department of Justice believed that the bank failed to prevent a money laundering operation through the American Express Bank International (AEBI) based in Miami. The figures amount to around $55 million worth of drug proceeds, which were laundered through currency transfers of a South American currency into a US dollars.

American Express has had to enter into an agreement where they take responsibility for their employees actions and behaviour, the excuse of stating that employees are responsible will no longer be accepted. They also need to establish internal policies, training and tests; this will protect the bank from money laundering attempts.

Source [CFO]

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