American Express Company agreed to pay $65 million for failing to detect drug−related money transactions laundered through a subsidiary over several years, U.S. authorities said on Monday, August 6. The unit, American Express Bank International, entered into a deferred prosecution agreement with the Department of Justice (DOJ) to resolve a charge that it failed to
maintain an effective anti−money laundering program. The AEBI's anti−money laundering program "had serious and systemic deficiencies," the U.S. Federal Reserve said in a cease−desist order, citing findings from a DOJ investigation. The DOJ found specific instances of suspicious or illicit activity in drug−related money laundering transactions, moved through "Black Market Peso Exchange" wire transfers which were part of an undercover law
enforcement operation, according to the Fed's order.

Source:http://www.washingtonpost.com/wp&#87...080601129.html

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