SAN ANTONIO — USAA Federal Savings Bank has been ordered to pay $140 million in civil money penalties related to the Bank Secrecy Act, according to the Financial Crimes Enforcement Network (FinCEN).
The federal agency said USAA Federal Savings Bank admitted it failed to implement and maintain an anti-money laundering program, which was a requirement under the Bank Secrecy Act. That took place from at least January 2016 through April 2021.
The San Antonio-based bank also admitted that it willfully failed to accurately and timely report thousands of suspicious financial activity by its customers, including customers using personal accounts for apparent criminal activity.
“As its customer base and revenue grew in recent years, USAA FSB willfully failed to ensure that its compliance program kept pace, resulting in millions of dollars in suspicious transactions flowing through the U.S. financial system without appropriate reporting,” said FinCEN’s Acting Director Himamauli Das.
As far as the penalty of $140 million, $80 million was assessed by FinCEN and $60 million was assessed by the Office of the Comptroller of the Currency for related violations.
KENS 5 reached out to the bank Friday, and USAA responded with this statement:
"While the issues identified in these orders did not result in any individual member harm, we understand the importance of these requirements. Compliance is a top and urgent priority that is fundamental to providing our members with the highest level of service,” Wayne Peacock, the CEO of USAA said. “USAA has already made progress in many critical areas by investing in new systems and training, enhancing staffing and expertise, and improving our processes. And we have an unwavering commitment to the military community.”