The U.S. Federal Deposit Insurance Corporation (FDIC) has lifted a consent order against Shinhan Bank America, ending an eight-year period of heightened regulatory oversight related to anti-money laundering (AML) compliance. The decision is expected to support the bank’s efforts to expand its business operations in the United States.
According to financial industry sources on April 27, the FDIC formally terminated the consent order on March 13. The regulatory measure had been in place since 2017, when Shinhan Bank America first agreed to the order aimed at addressing deficiencies in its AML program.
A consent order is a legally enforceable agreement between a regulator and a financial institution to correct identified violations or business practices, without the institution admitting or denying the findings. Shinhan Bank America had been subject to two such orders, in 2017 and again in 2022, requiring prior FDIC approval for activities such as capital increases, dividend payments, new business ventures, and senior management changes. The bank also faced frequent examinations and was required to submit regular compliance reports.
Despite efforts to improve its compliance systems, Shinhan Bank America was fined $25 million in September 2023 by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), the FDIC, and the New York State Department of Financial Services (NYSDFS) for continued deficiencies. The fine contributed to a net loss of 26.7 billion won that year.
With the consent order lifted, Shinhan Bank is planning a $50 million capital injection into its U.S. subsidiary to support growth initiatives. The bank is also reviewing strategies to expand lending to South Korean businesses entering the U.S. market, particularly following tariff changes introduced under the Trump administration.
Competition in the U.S. market is expected to increase, particularly with Woori America Bank, a subsidiary of Woori Bank, which reported total assets of approximately 5 trillion won and a net profit of 37.2 billion won last year. By comparison, Shinhan Bank America reported total assets of 2.56 trillion won and a net profit of 4.9 billion won at the end of 2024. Shinhan Bank America operates 14 branches across New York, New Jersey, Georgia, California, and Texas, regions with significant Korean-American populations.
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