American Express bank unit to pay $350 million penalty to resolve compliance reviews
Consent orders from the Federal Reserve and the Office of the Comptroller of the Currency resolve previously disclosed reviews of the company's financial crimes compliance program. A portion of the penalty was reserved in prior periods.
American Express Company (AXP) said in an 8-K filing on Thursday that it and its units have resolved reviews by banking regulators of certain aspects of its financial crimes compliance program.
The company and American Express Travel Related Services Company, Inc. consented to an order issued by the Board of Governors of the Federal Reserve System.
American Express National Bank (AENB) consented to an order issued by the Office of the Comptroller of the Currency (OCC).
AENB also agreed to pay a civil money penalty of $350 million to the OCC.
A portion of that penalty was reserved for in prior periods, the filing said.
The company said the penalty does not affect the full-year 2026 guidance it provided earlier.
The consent orders do not impose an asset cap on the company, according to the filing.
The company does not expect the costs of addressing the requirements of the consent orders to affect its 2027 guidance, the filing said.
The filing does not give a figure for those costs.
The reviews had been disclosed in earlier filings, the company said in the 8-K.