US OCC issues enforcement action against Wells Fargo by Reuters

(Reuters) – The Office of the Comptroller of the Currency (OCC), a top U.S. banking regulator, said on Thursday it had issued an enforcement action against Wells Fargo over deficiencies in its risk management practices.

The bank’s shares were down 5% in afternoon trade. The regulator said it had identified weaknesses in the bank’s financial crime risk management practices and internal anti-money laundering controls.

An agreement under the enforcement action requires the lender to receive permission from the OCC before launching new business in areas of medium or high risk for money laundering or sanctions. The regulator, however, is not seeking any monetary penalty.

“We have worked to address a substantial portion of what is required in the formal agreement and are committed to completing the work with the same sense of urgency as our other regulatory commitments,” the bank said in a statement.