On February 15, 2018, the DOJ announced that it was charging U.S. Bancorp (“Bancorp”) with two counts of violating the Bank Secrecy Act, based on conduct by its subsidiary, U.S. Bank NA (“U.S. Bank”), the fifth largest bank in the United States.  The DOJ agreed to defer prosecution for two years based on an agreement with U.S. Bank, in which it will pay a $528 million criminal penalty and undertake efforts to reform its Bank Secrecy Act and AML compliance programs.  The underlying charges stem from the failure to file Suspicious Activity Reports on transactions involving accounts connected to online payday lending mogul Scott Tucker, who was later convicted of numerous federal felonies in connection with his business activities in October 2017.  In a statement of facts filed with the court, U.S. Bank agreed that it willfully failed to establish and maintain an adequate AML program between 2009 and 2014 and disregarded numerous red flags that Tucker’s activity raised.  The deferred prosecution agreement, as well as related civil resolutions with other regulators, are subject to court approval. United States v. U.S. Bancorp, 18-cr-00150 (S.D.N.Y.); United States Dep’t of Treasury v. U.S. Bank NA, 18-cv-01358 (S.D.N.Y.)

DOJ Press Release