The US Federal Reserve Board and the Treasury announced fines Thursday for Wells Fargo bank totaling almost $100 million for enabling sanctions violations worth more than half a billion dollars over five years.
The Fed said in a statement that Wells Fargo’s historically “inadequate” oversight of sanctions compliance risks at a subsidiary allowed a foreign bank to process around $532 million in “prohibited transactions” between 2010 and 2015.
The Fed and Treasury fined the Californian lender a total of $97.8 million, according to the statement, $67.8 million of which was levied by the Fed.
The Fed said Wells Fargo’s subsidiary had “provided a trade finance platform to a foreign bank,” which then used this platform to process prohibited transactions.
The Consumer Financial Protection Bureau recently fined Wells Fargo $3.7 billion fine for its “illegal conduct” and “widespread mismanagement” of auto loans.