Credit card firm Capital One is fined for violating US anti-money laundering law

FILE PHOTO: The Capital One logo and ticker are displayed on a floor screen of the New York Stock Exchange (NYSE) in New York, USA, May 21, 2018. REUTERS / Brendan McDermid / File Photo

(Reuters) – Credit card firm Capital One Financial Corp has been fined $ 390 million for committing what the U.S. government called deliberate and negligent violations of the Bank Secrecy Act, an anti-money laundering law, a ministry office said of Finance Friday.

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) said in a statement that Capital One admitted that it deliberately failed to implement and maintain an effective program to protect against money laundering, as required by law. (bit.ly/3qmXFji)

FinCEN said the financial services firm admitted that it failed to file “thousands of suspicious activity reports” and “thousands of currency transaction reports” related to a business unit known as the Check Cashing Group.

“The failures described in this enforcement action are outrageous,” FinCEN director Kenneth Blanco said in a statement.

The violations occurred from at least 2008 through 2014 and resulted in millions of dollars in suspicious transactions not being reported in a timely and accurate manner, FinCEN added.

Reporting by Arundhati Sarkar in Bengaluru; Editing by Will Dunham

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