(Reuters) – The Office of the Comptroller of the Currency (OCC), the main U.S. banking regulator, said on Thursday it had filed enforcement actions against Wells Fargo & Co. citing poor risk management practices.
The bank's shares fell 5% in afternoon trading after regulators said they had identified deficiencies in the bank's financial crime risk management practices and internal controls to combat money laundering.
Under the enforcement agreement, lenders would be required to get permission from the OCC before starting new business in jurisdictions with medium or high risk for money laundering or sanctions, but the regulator is not seeking financial penalties.
“We are working to address a significant portion of the requirements of the definitive agreement and are committed to completing the work with the same urgency as our other regulatory obligations,” the bank said in a statement.
(Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri and Shinjini Ganguly)
