Regulator Orders Wells Fargo to Fix Financial-Crime Controls

By Connor Hart

The Office of the Comptroller of the Currency said it has identified deficiencies with Wells Fargo's anti-money-laundering controls and financial crimes risk-management practices.

The OCC on Thursday entered an agreement with Wells Fargo, under which enhancements will be made to the bank's anti-money laundering and sanctions risk-management practices. In addition, Wells Fargo must obtain the OCC's acceptance of its program for assessing anti-money laundering and sanctions risks of new offerings, as well as provide notice before expanding its offerings.

Wells Fargo said it was working to address a significant portion of the requirements included in the agreement: "We are committed to completing the work with the same sense of urgency as our other regulatory commitments."

In November, The Wall Street Journal reported that the bank was struggling with its obligations to monitor financial crimes, a challenge in its yearslong effort to recover from a series of scandals.

Shares of Well Fargo were recently down 2.9% at $52.20.

Write to Connor Hart at connor.hart@wsj.com