Fed Hits BB&T for ‘Deficiencies’ in Anti-Money Laundering Compliance Efforts

The Federal Reserve this week ordered BB&T Corp. to address weaknesses in its anti-money laundering program, according to a cease-and-desist order publicly released Friday by the regulator.

The order, dated Jan. 25, requires the Winston-Salem, N.C.-based lender to address “significant deficiencies” in its anti-money laundering compliance program that were identified in a review by the Federal Reserve Bank of Richmond. BB&T must tell the Fed within 60 days of the order how it plans to resolve the issues, and submit quarterly updates on those actions.

Brian Davis, a spokesman for the bank, said BB&T has already made “significant enhancements” to the program. “We’re committed to working alongside our regulatory partners to implement the needed improvements as quickly as possible,” Davis said in an email statement to Morning Consult.

BB&T disclosed the internal control issues in a securities filing that announced a similar Dec. 20 consent order with the Federal Deposit Insurance Corp. and the North Carolina Commissioner of Banks. That document said “no criminal activity has been identified as the result of such deficiencies, and no financial penalty was levied.” BB&T also said in that document that it expected a consent order with the Fed.

Morning Consult