8-KOther Events

TRUIST FINANCIAL CORP 8-K Report, Corporate Update (Dec 20, 2016)

Filed December 20, 2016For Securities:TFCTFC-POTFC-PRTFC-PI

Summary

Truist Financial Corporation (TFC), formerly BB&T Corporation, announced on December 19, 2016, that its bank subsidiary, Branch Banking and Trust Company, has entered into a Consent Order with the Federal Deposit Insurance Corporation (FDIC) and the North Carolina Commissioner of Banks. This order addresses certain internal control deficiencies within the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Compliance Program. Importantly, no criminal activity was identified, and no financial penalty was imposed as a result of these deficiencies. BB&T has already initiated corrective actions, including investments in process and system upgrades, enhanced training and education for associates, and the hiring of an experienced BSA/AML professional. The company anticipates a similar regulatory order with the Federal Reserve System in the near future. While this indicates a regulatory focus on strengthening compliance, the absence of criminal findings or financial penalties suggests that the issues are primarily related to internal controls and operational enhancements rather than substantive misconduct.

Key Highlights

  • 1BB&T (now Truist) entered into a Consent Order with the FDIC and North Carolina Commissioner of Banks.
  • 2The order addresses deficiencies in the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Compliance Program.
  • 3No criminal activity was identified in connection with these deficiencies.
  • 4No financial penalty was levied by the regulators.
  • 5BB&T has already implemented corrective actions, including system upgrades and enhanced training.
  • 6A highly experienced BSA/AML professional has been hired to oversee improvements.
  • 7A similar regulatory order with the Federal Reserve System is anticipated.

Frequently Asked Questions

The filing addresses deficiencies in Truist Financial Corporation's (formerly BB&T) internal controls related to its Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Compliance Program, as outlined in a Consent Order with the FDIC and North Carolina Commissioner of Banks.

No, the filing explicitly states that no criminal activity was identified as a result of these deficiencies, and no financial penalty was levied by the regulators.

Truist (BB&T) is investing in process and system upgrades, increasing emphasis on education and training for compliance, and has hired an experienced BSA/AML professional to oversee improvements.

The absence of financial penalties or criminal activity suggests that the issue is primarily operational and related to internal controls. Investors can view the company's proactive steps to enhance its BSA/AML program as a positive indicator of its commitment to regulatory compliance and risk management, although ongoing monitoring of these improvements would be prudent.