American Express Fined $350M for Anti-Money Laundering Failures
American Express has been fined $350 million by federal regulators who say the credit card giant's anti-money laundering program failed to catch about $13 billion in suspected money laundering.
The Office of the Comptroller of the Currency (OCC) issued the penalty against American Express National Bank on Thursday. The Federal Reserve also took separate action against the company, ordering it to fix weaknesses in its programs designed to fight financial crimes.
What Regulators Found
The OCC found that the bank failed to maintain an adequate anti-money laundering program under the Bank Secrecy Act, the federal law that requires banks to help detect and report suspicious financial activity.
According to regulators, the bank did not properly identify, evaluate or report about $13 billion in suspected trade-based money laundering. That type of scheme typically involves disguising illegal money as payments for goods or services. American Banker reported the activity took place from roughly June 2014 to May 2025, Hoodline noted.
The OCC said the bank's program suffered from inadequate resources, inexperienced staff and weak training. Regulators also found shortcomings in how the bank checked and identified customers, and said its risk assessment was not tailored to its actual business.
In particular, the OCC said the bank focused too heavily on its relatively small deposit account products and not enough on its much larger credit and charge card business.
The Federal Reserve's Action
The Federal Reserve issued a cease-and-desist order against American Express Company and its subsidiary, American Express Travel Related Services. The Fed cited a failure to adequately detect and report suspicious activity related to money laundering, along with weaknesses in how the company carried out its anti-money laundering program across the business.
The Fed also flagged problems with transaction monitoring, fraud referrals, third-party risk assessments and overall financial crimes risk management. Reports did not indicate that the Fed imposed a separate fine on the company.
"The OCC expects banks of American Express's size and complexity to devote sufficient resources" to ensure compliance, Comptroller of the Currency Jonathan Gould said, according to PYMNTS.
What American Express Must Do
As part of the enforcement actions, American Express is required to set up a board-level compliance committee and develop a comprehensive plan to fix the problems. The bank must also conduct an independent look-back at past transactions to identify suspicious activity reports that should have been filed but were not.
American Express did not admit or deny the findings. CEO Stephen Squeri said the company takes its responsibility to combat financial crimes seriously and is committed to addressing the regulators' concerns.
"While we have made meaningful progress, we know there is more work to do," Squeri said. He added that the company has been working with regulators to strengthen its controls and with law enforcement on cases where people misused its products. Amex noted that the regulators' reviews had been previously disclosed publicly.
What It Means for Cardholders
The penalty is aimed at the company's internal compliance systems, and regulators did not say the findings affect the accounts of everyday customers. American Express remains one of the largest card issuers in the country and is known for its rewards and travel cards, which often rank among the credit cards with the best perks.
This is not the first time regulators have taken issue with the company's oversight. In 2012, the Federal Reserve took enforcement action against American Express after finding problems with its compliance risk management and internal audits.
Curious for more stories that keep you informed and entertained? From the latest headlines to everyday insights, YourLifeBuzz has more to explore. Dive into what’s next.