- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-05-18T18:17:00
Wells Fargo agreed to pay $1 billion to settle a class-action lawsuit filed by shareholders who claimed the bank overstated its progress in complying with regulatory orders related to its 2016 fake accounts scandal.
The bank entered the settlement Tuesday in U.S. District Court for the Southern District of New York with plaintiffs that included the Employees’ Retirement System of Rhode Island (ERSRI), the Public Employees’ Retirement System of Mississippi, the Louisiana Sheriffs’ Pension & Relief Fund, and Swedish bank Handelsbanken Fonder AB. The settlement was preliminarily approved by Judge Gregory Woods.
The plaintiffs alleged Wells Fargo and several of its executives, including former Chief Executive Timothy Sloan, made false and misleading statements about the bank’s progress complying with 2018 consent orders imposed by regulators, including the Federal Reserve Board, the Treasury Department’s Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau, to rectify improper banking practices and deficiencies in corporate oversight in the aftermath of the fake accounts scandal.
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The Treasury Department’s Office of the Comptroller of the Currency ordered Wells Fargo to make “comprehensive corrective actions” to its Bank Secrecy Act/anti-money laundering and U.S. sanctions programs, along with receive permission from the OCC to offer new products and services or enter new geographic markets with “medium or high” ...
Wells Fargo will pay nearly $98 million to settle charges a subsidiary facilitated more than $532 million worth of prohibited transactions in violation of sanctions against Iran, Syria, and Sudan.
Carrie Tolstedt, the former head of Wells Fargo’s community bank, will pay a $17 million fine issued by the Office of the Comptroller of the Currency for her role in the bank’s fake accounts scandal.
When the DOJ released its revised Evaluation of Corporate Compliance Programs, it turned some heads. Tucked into a section on risk assessments was a strongly worded series of questions that appeared to shoulder compliance teams with the responsibility for ensuring the safe use of AI tools by their firms.
The Department of Justice’s Evaluation of Corporate Compliance Programs has made the importance of artificial intelligence governance frameworks clear, but it didn’t say what role compliance should play. Here’s the answer.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued an alert to financial institutions about their obligations to report deepfakes, warning artificial intelligence has given bad actors additional tools in their arsenal.
