Shares in Wells Fargo fell on Thursday after the bank inked a formal agreement with the Office of the Comptroller pledging to fix deficiencies in its financial crimes risk management practices and anti-money laundering internal controls.
The bank, which has had a series of run-ins with regulators over the last decade, saw its stock close down four per cent but escaped a fine from the OCC.
The regulator says it found issues with Wells Fargo's handling of suspicious activity and currency transaction reporting, customer due diligence, and customer identification and beneficial ownership programmes.
The agreement requires the bank to take comprehensive corrective actions to boost its AML and sanctions compliance programmes.
In a statement, Wells says: “We have been working to address a substantial portion of what’s required in the formal agreement, and we are committed to completing the work with the same sense of urgency as our other regulatory commitments.”