Wells Fargo Pushed to Improve Financial Crime Monitoring

<p>U.S. regulators have taken <a href="https://www.financemagnates.com/tag/wells-fargo/">bank and financial
services firm</a>, Wells Fargo to task, demanding that the bank dramatically
improve its monitoring of financial crime. According to <a href="https://www.wsj.com/finance/banking/regulators-say-wells-fargo-isnt-doing-enough-to-police-customer-crimes-0809281d?mod=latest_headlines">The
Wall Street Journal</a>, U.S. regulators are focusing on the bank’s procedures
and tools, rather than on a specific event or client.</p>
<p>&nbsp;<br></p>
<p>The bank <a href="https://www.reuters.com/business/finance/us-regulators-push-wells-fargo-improve-financial-crime-monitoring-wsj-2023-11-16/#:~:text=Wells%20Fargo%20declined%20to%20respond,following%20probes%20into%20unrelated%20matters." target="_blank" rel="nofollow">refused to comment</a> when approached by Reuters, so everything’s
a little cloak and dagger right now.</p>
<blockquote><p lang="en" dir="ltr">WSJ News Exclusive: Wells Fargo is struggling with its regulatory obligation to monitor financial crime, the latest challenge in the bank’s yearslong effort to recover from a series of scandals <a href="https://t.co/zPCgyaLcQT">https://t.co/zPCgyaLcQT</a> <a href="https://t.co/zPCgyaLcQT">https://t.co/zPCgyaLcQT</a></p>— The Wall Street Journal (@WSJ) <a href="https://twitter.com/WSJ/status/1725151824989106367?ref_src=twsrc%5Etfw">November 16, 2023</a></blockquote>
<h1>What’s This All About?</h1>
<p>In 2016, <a href="https://corpgov.law.harvard.edu/2019/02/06/the-wells-fargo-cross-selling-scandal-2/">a
scandal erupted around Wells Fargo’s sales practices</a> and ever since the
bank has been working to rectify a series of issues in its <a href="https://www.financemagnates.com//">compliance</a>
processes. However, these steps have come under criticism from insiders at
various points. </p>
<p>&nbsp;<br></p>
<p>According to the WSJ reporting, authorities haven’t ruled out a fine
for Wells Fargo, despite the fact that efforts to fix its processes are
ongoing. So, there appears to be an issue there.&nbsp;It’s all very clandestine, but something’s certainly afoot.</p>
<p>&nbsp;<br></p>
<h2>Allowing a Ponzi Scheme?</h2>
<p>Wells Fargo is also <a href="https://www.reviewjournal.com/crime/courts/lawsuit-wells-fargo-should-have-known-about-las-vegas-ponzi-scheme-2773142/">currently
facing a lawsuit</a> claiming it allowed Matthew Beasley, a Las Vegas attorney,
to operate an alleged <a href="https://www.financemagnates.com//">Ponzi scheme</a>. In court filings the bank denied that
"it had actual knowledge of, or provided assistance to, any alleged
wrongdoing by Beasley," according to the WSJ report.</p><p><br></p>

<p>The news comes at a time when the bank is cutting back its physical
operations to increasingly <a href="https://www.financemagnates.com/trending/wells-fargo-focuses-on-digital-while-cutting-physical/">focus
on digital services</a>.</p><script async charset="utf-8" src="https://platform.twitter.com/widgets.js"></script>

This article was written by Louis Parks at www.financemagnates.com.