American Express (AXP) announced it has resolved regulatory reviews of its financial crimes compliance program by consenting to orders from the Federal Reserve and the Office of the Comptroller of the Currency (OCC). As part of the settlement, its subsidiary American Express National Bank will pay a $350 million civil money penalty.
Key Details
- Regulatory Penalty: The company's subsidiary, American Express National Bank (AENB), will pay a $350 million civil money penalty to the OCC.
- Financial Impact: The penalty will not impact the company's full-year 2026 guidance, as a portion was reserved in prior periods. Costs to address the consent orders are not expected to affect 2027 guidance.
- Operational Impact: The consent orders do not impose an asset cap on the company.