The Justice Department accused U.S. Bank of severely neglecting anti-money laundering rules, helping a payday lender operate an illegal business and lying to a regulator about its plans for tracking potential criminal activity by bank customers. Federal prosecutors reached an agreement with U.S. Bank to defer prosecution as long as the bank could show it had improved its monitoring of customer transactions.
For about five years, senior bank employees tried to balance their security system’s constant alerts about suspicious customer activity against internal staffing limitations, the authorities said.
To settle the Justice Department charges and cases brought by other regulators, the bank agreed to pay various fines and penalties.
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