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.