(Reuters) – The Office of the Comptroller of the Currency (OCC), one of the top regulators of the U.S. banking sector, said on Thursday it has filed an enforcement action against Wells Fargo over deficiencies in the company’s risk management practices.
Shares of the bank fell 5% in midday trading. The regulator said it had identified deficiencies in the bank’s risk management practices around financial crimes and its internal controls around anti-money laundering.
An agreement under the enforcement action requires the lender to obtain approval from the OCC before starting new business in areas with medium or high risk of money laundering or sanctions. However, the regulator is not seeking a fine.
“We have been working on addressing a significant portion of the requirements in the formal agreement and we are committed to completing the work with the same sense of urgency as our other regulatory obligations,” the bank said in a statement.
(Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri and Shinjini Ganguli)
