© Reuters. FILE PHOTO: The Wells Fargo Bank branch in New York City, U.S., March 17, 2020. REUTERS/Jeenah Moon
By Hannah Lang
(Reuters) – Wells Fargo & Co will pay penalties of about $97.8 million for inadequate oversight of its compliance risks, allowing for apparent violations of U.S. sanctions against Iran, Syria and Sudan, the report said. Thursday federal authorities.
The Federal Reserve and the Treasury Department’s Office of Foreign Assets Control (OFAC) said poor supervision of the bank allowed it to violate US sanctions by providing a trade financing platform to a foreign bank that used it to process $532 million in prohibited transactions.
The Fed fined fargo wells (NYSE:) $67.8 million, while OFAC fined the bank $30 million for inadequate oversight of its compliance risks from 2010 to 2015.
“Wells Fargo is pleased to resolve this legacy matter involving conduct that ended in 2015, which we voluntarily reported and fully cooperated with OFAC and the Federal Reserve Board to address,” a Wells Fargo spokesperson said in a statement.
In a statement, OFAC said Wells Fargo and its predecessor, Wachovia Bank, provided a European bank with software starting in 2008 that enabled the company to process 124 transactions involving sanctioned individuals or jurisdictions.
In December, the US Bureau of Consumer Financial Protection hit Wells Fargo with the largest civil penalty ever imposed by the watchdog as part of a $3.7 billion settlement to settle charges for widespread loan mismanagement for cars, mortgages and bank accounts.
