MJP –
The federal government is looking into Wells Fargo’s anti-money-laundering and sanctions procedures, the bank announced.
According to Reuters, the business did not elaborate on the nature of the investigations or reveal which government agencies were investigating its business activities.
“Questions or investigations on the company’s [AML] and sanctions programs have been being conducted by government authorities.”
The petition states that Wells Fargo is now in talks with the U.S. Securities and Exchange Commission (SEC) to end an inquiry into the bank’s cash sweep alternatives for investment advice clients.
In a November filing with the SEC, the business disclosed the investigation.
Regarding the outcome of these negotiations, “There can be no assurance,” Wells Fargo noted in its most recent report.
No additional information regarding the nature of the problems or the agencies leading the investigations was provided by the bank.
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According to the source, a representative from the corporation chose not to comment on anything beyond the filing.
Numerous penalties and punishments, such as a Federal Reserve asset position cap, have been a major obstacle for WFC since September 2016.
A class action complaint was filed against Wells Fargo last week. The plaintiffs claimed that the bank overcharged thousands of its U.S.-based employees for prescription drugs because of how it handled its employee health insurance plan.
In this case, a nationwide class of potentially tens of thousands of people who are participants or beneficiaries in the WFC health plan are suing for statutory fines and damages that have not been defined.
A planned class action lawsuit accusing WFC of participating in a $300 million Ponzi scam was filed against the bank in June 2024.
More than a thousand people, mostly elderly people, lost a lot of money in this scam.
According to the complaint, Wells Fargo was aware of the fraudulent actions from 2011 to 2021 and gave the criminals a lot of help while they reaped the rewards of the scam.
