September 29, 2023
SUPERINTENDENT ADRIENNE A. HARRIS ANNOUNCES $10 MILLION SETTLEMENT WITH SHINHAN BANK AMERICA FOR REPEATED COMPLIANCE FAILURES
Bank Continued to Conduct Business in an Unsafe and Unsound Manner Despite Prior Regulatory Actions
Superintendent of Financial Services Adrienne A. Harris announced today that Shinhan Bank America (the “Bank”), a subsidiary of Shinhan Bank Co., Ltd., has agreed to pay $10 million in penalties pursuant to a Consent Order entered into with the New York State Department of Financial Services (“DFS” or the “Department”). The Consent Order resolves the Department’s investigation into repeated violations of Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) requirements and New York law.
“Despite regulatory actions from the Department and federal financial regulators, Shinhan Bank America failed to address substantial compliance deficiencies,” said Superintendent Harris. “Ensuring that banks operating in New York have strong BSA/AML compliance programs is essential to maintaining the integrity of the financial markets and preventing bad actors from abusing the system for illegal means.”
The Consent Order resolves the Department’s investigation into the Bank’s transaction monitoring and BSA/AML programs. The Department found that these programs suffered from material deficiencies and that the Bank neglected to remediate them over a period of years. Despite prior enforcement actions by the Federal Deposit Insurance Corporation (“FDIC”) in 2017 and the Department in 2020, the Bank failed to address weaknesses and unsafe and unsound conditions.
As part of its agreement with the Department, in addition to paying a $10 million penalty to New York State, Shinhan Bank America will be required to create a written plan, acceptable to the Department, detailing enhancements to compliance policies and procedures, suspicious activity monitoring and reporting, and customer due diligence requirements.
The Department coordinated this investigation with the Federal Deposit Insurance Corporation (“FDIC”) and the U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”).
To review the Shinhan consent order, visit the DFS website.