US OCC takes enforcement action against Wells Fargo

(Reuters) – The Office of the Comptroller of the Currency (OCC), one of the United States' main banking regulators, said on Thursday that it had initiated enforcement action against Wells Fargo due to deficiencies in risk management.

The bank's shares fell 5 percent in afternoon trading. The regulator said it had identified deficiencies in the bank's risk management with regard to financial crime and in its internal controls to combat money laundering.

An agreement under the enforcement action requires the lender to obtain approval from the OCC before engaging in new business in areas with medium or high risk for money laundering or sanctions, but the regulator does not require a fine.

“We have been working to meet a significant portion of the requirements of the formal agreement and we are committed to completing the work with the same urgency as our other regulatory obligations,” the bank said in a statement.

(Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri and Shinjini Ganguli)