Discover to implement anti-money laundering procedures

Monday 16 June 2014 11:43 CET | News

US-based payment company Discover Financial Services has agreed to upgrade its procedures to prevent money laundering under a pact with the Federal Deposit Insurance Corporation (FDIC).

According to the company, it would put in place a revised Bank Secrecy Act compliance program under the agreement. Discover, which didnt admit or deny any charges of unsound banking practices, wont pay any fines as part of the agreement.

Under the FDICs order, Discover must adopt a revised compliance program within 120 days, retain a third-party consultant to help it assess risks of its bank operations and take other steps.

Discover disclosed in a February 2014 regulatory filing that the FDIC had notified it of possible deficiencies in its program for preventing money laundering. The company agreed in 2012 to pay USD 214 million in customer refunds and fines under a settlement with the Consumer Financial Protection Bureau and the FDIC over allegations it mismarked add-on products such as a debt-cancellation service and identity-theft protection to credit-card customers.

Discover is the sixth-largest credit-card issuer based on outstanding loans. It also operates an online bank that offers checking and savings accounts, certificates of deposit and other consumer-banking products.

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Keywords: Discover Financial Services, anti-money laundering, online fraud, security, US
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime

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