Federal regulators penalized American Express $350 million on Tuesday for systemic anti-money laundering breakdowns, one of the largest enforcement actions of the Trump administration’s second term. The Office of the Comptroller of the Currency cited the firm for failing to detect and report roughly $13 billion in suspected trade-based money laundering over a decade, while the Federal Reserve announced a parallel action tied to the company’s national bank subsidiary.
The breakdown spanned ten years
The OCC said the bank’s suspicious-activity monitoring and reporting processes suffered systemic failures that prevented timely identification and evaluation of the flagged transactions. The activity in question occurred over the past decade, according to the regulator’s statement.
Guidance held, no asset cap
Amex disclosed in a filing that the fine will not alter its full-year 2026 outlook and that the orders do not include an asset cap. Remediation costs are also not expected to affect 2027 guidance, the company said.
A contrast with the deregulatory push
The penalty arrives amid a broader effort by Trump-appointed watchdogs to ease rules for large banks, including lower capital buffers, narrower supervisory scope and a smaller Fed oversight unit. Tuesday’s action stands out against that backdrop.
Squeri acknowledges more work
Chief executive Steve Squeri said internal and external reviews had identified areas for improvement. The firm investigated transactions processed by individuals misusing its products, referred the information to law enforcement and took additional steps. Meaningful progress has been made, Squeri said, though more remains.
Shares dip after hours
The stock fell nearly 2% to $302.10 in after-market trading at 5:22 p.m. Eastern on October 8.