QTR . 2 | 2021
••• IN THIS ISSUE
> Capitol One Assessed $ 390 Million Civil Money Penalty for BSA Violations
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Capital One Assessed $ 390 Million Civil Money Penalty for BSA Violations
On Jan . 15 , 2021 , the Financial Crimes Enforcement Network ( FinCEN ) assessed a $ 390 million civil money penalty against Capital One National Association ( Capital One ) for Bank Secrecy Act ( BSA ) violations . The assessment details how Capital One violated BSA requirements in its check cashing group ( CCG ) from 2008 through 2014 by failing to maintain an effective anti-money laundering ( AML ) program , and file suspicious activity reports ( SARs ) and currency transaction reports ( CTRs ) timely .
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Background
Capital One is one of the largest banks in the country and provides a wide array of financial products . Between 2008 and 2014 , it operated its CCG which served between approximately 90 and 150 New York- and New Jerseyarea check cashers that usually operated storefront locations and conducted check cashing as their primary business .
CCG customers were charged a service fee for cashing retail checks from individuals and corporate checks from business entities . Capital One provided banking services to the CCG including , among other things , the following for their customers :
• Processing checks deposited .
• Providing armored car cash shipments .
• Providing currency needed to cash checks , which was mostly delivered via armored car shipments .
These customers used over 1,000 Capital One accounts related to their check cashing businesses , including to deposit checks they cashed .
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