Bank Watch

BB&T ordered to fix deficiencies in anti-money laundering program

A BB&T logo hangs atop BB&T Corp. headquarters building in Winston-Salem in this 2009 file photo.
A BB&T logo hangs atop BB&T Corp. headquarters building in Winston-Salem in this 2009 file photo. BLOOMBERG NEWS

BB&T announced Tuesday a consent order from regulators requiring the Winston-Salem bank to address internal-control deficiencies within its program to comply with anti-money laundering laws.

The order from the Federal Deposit Insurance Corp. and North Carolina Commissioner of Banks calls for “corrective actions and enhancements” from BB&T, according to a securities filing from the bank. The filing noted that no criminal activity has been identified as the result of the deficiencies, and that the bank did not receive any financial penalties from the findings.

BB&T also announced it expects to enter into a similar order with the Federal Reserve “in the near future,” without providing specifics.

Tuesday’s order involves BB&T’s program for complying with the Bank Secrecy Act, passed by Congress in 1970.

The act requires financial institutions to help the U.S. government detect and prevent money laundering. Among other things, financial institutions are supposed to report suspicious activity that might indicate money-laundering, tax evasion or other criminal activities.

BB&T said it has already taken steps toward improving the compliance program. The bank said those actions include additional investment into processes and system upgrades to strengthen anti-money laundering controls.

Bank spokesman Brian Davis said BB&T “has a long history of quickly addressing regulatory concerns.” The bank made “significant” enhancements to the compliance program in the past year and is committed to implement needed improvements as quickly as possible, he said.

BB&T is the third-largest bank by deposits in the Charlotte area.

Deon Roberts: 704-358-5248, @DeonERoberts

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